542851.BO WACC - Weighted Average Cost of Capital

The WACC of Gensol Engineering Ltd (542851.BO) is 13.1%.

The Cost of Equity of Gensol Engineering Ltd (542851.BO) is 11.60%.

The Cost of Debt of Gensol Engineering Ltd (542851.BO) is 22.85%.

	Range	Selected
Cost of equity	10.00% - 13.20%	11.60%
Tax rate	25.90% - 28.20%	27.05%
Cost of debt	10.20% - 35.50%	22.85%
WACC	9.3% - 17.0%	13.1%

WACC

542851.BO WACC calculation

Category	Low	High

Long-term bond rate	7.4%	7.9%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.37	0.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	13.20%

Tax rate	25.90%	28.20%
Debt/Equity ratio	0.45	0.45
Cost of debt	10.20%	35.50%

After-tax WACC	9.3%	17.0%


Selected WACC	13.1%

542851.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 542851.BO:

cost_of_equity (11.60%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.37) + 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.