500365.BO WACC - Weighted Average Cost of Capital

The WACC of Welspun Specialty Solutions Ltd (500365.BO) is 14.1%.

The Cost of Equity of Welspun Specialty Solutions Ltd (500365.BO) is 14.10%.

The Cost of Debt of Welspun Specialty Solutions Ltd (500365.BO) is 14.25%.

	Range	Selected
Cost of equity	11.90% - 16.30%	14.10%
Tax rate	0.80% - 1.70%	1.25%
Cost of debt	12.10% - 16.40%	14.25%
WACC	11.9% - 16.3%	14.1%

WACC

500365.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.6	0.91

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	16.30%

Tax rate	0.80%	1.70%
Debt/Equity ratio	0.01	0.01
Cost of debt	12.10%	16.40%

After-tax WACC	11.9%	16.3%


Selected WACC	14.1%

500365.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 500365.BO:

cost_of_equity (14.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.