The WACC of Cian Healthcare Ltd (542678.BO) is 14.4%.
| Range | Selected | |
| Cost of equity | 25.00% - 32.50% | 28.75% |
| Tax rate | 7.70% - 41.60% | 24.65% |
| Cost of debt | 8.90% - 26.90% | 17.90% |
| WACC | 10.7% - 18.1% | 14.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 2.19 | 2.65 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 25.00% | 32.50% |
| Tax rate | 7.70% | 41.60% |
| Debt/Equity ratio | 5.83 | 5.83 |
| Cost of debt | 8.90% | 26.90% |
| After-tax WACC | 10.7% | 18.1% |
| Selected WACC | 14.4% | |
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for 542678.BO:
cost_of_equity (28.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.19) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.