INDOTHAI.NS WACC - Weighted Average Cost of Capital

The WACC of Indo Thai Securities Ltd (INDOTHAI.NS) is 11.3%.

The Cost of Equity of Indo Thai Securities Ltd (INDOTHAI.NS) is 11.30%.

The Cost of Debt of Indo Thai Securities Ltd (INDOTHAI.NS) is 59.25%.

	Range	Selected
Cost of equity	10.40% - 12.20%	11.30%
Tax rate	21.40% - 22.70%	22.05%
Cost of debt	10.00% - 108.50%	59.25%
WACC	10.4% - 12.3%	11.3%

WACC

INDOTHAI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	12.20%

Tax rate	21.40%	22.70%
Debt/Equity ratio	0	0
Cost of debt	10.00%	108.50%

After-tax WACC	10.4%	12.3%


Selected WACC	11.3%

INDOTHAI.NS'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 INDOTHAI.NS:

cost_of_equity (11.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.