542771.BO WACC - Weighted Average Cost of Capital

The WACC of Novateor Research Laboratories Ltd (542771.BO) is 11.2%.

The Cost of Equity of Novateor Research Laboratories Ltd (542771.BO) is 11.55%.

The Cost of Debt of Novateor Research Laboratories Ltd (542771.BO) is 7.25%.

	Range	Selected
Cost of equity	10.30% - 12.80%	11.55%
Tax rate	22.60% - 32.30%	27.45%
Cost of debt	4.00% - 10.50%	7.25%
WACC	9.9% - 12.5%	11.2%

WACC

542771.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.41	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	12.80%

Tax rate	22.60%	32.30%
Debt/Equity ratio	0.06	0.06
Cost of debt	4.00%	10.50%

After-tax WACC	9.9%	12.5%


Selected WACC	11.2%

542771.BO's CAPM model and how its cost of Equity is calculated

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 542771.BO:

cost_of_equity (11.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.