INDOTHAI.NS WACC - Weighted Average Cost of Capital

The WACC of Indo Thai Securities Ltd (INDOTHAI.NS) is 15.2%.

The Cost of Equity of Indo Thai Securities Ltd (INDOTHAI.NS) is 14.90%.

The Cost of Debt of Indo Thai Securities Ltd (INDOTHAI.NS) is 25.95%.

	Range	Selected
Cost of equity	13.30% - 16.50%	14.90%
Tax rate	20.40% - 21.20%	20.80%
Cost of debt	15.40% - 36.50%	25.95%
WACC	13.2% - 17.2%	15.2%

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	0.77	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	16.50%

Tax rate	20.40%	21.20%
Debt/Equity ratio	0.06	0.06
Cost of debt	15.40%	36.50%

After-tax WACC	13.2%	17.2%


Selected WACC	15.2%

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 (14.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.