506528.BO WACC - Weighted Average Cost of Capital

The WACC of Keltech Energies Ltd (506528.BO) is 14.3%.

The Cost of Equity of Keltech Energies Ltd (506528.BO) is 15.15%.

The Cost of Debt of Keltech Energies Ltd (506528.BO) is 8.20%.

	Range	Selected
Cost of equity	13.70% - 16.60%	15.15%
Tax rate	25.00% - 26.70%	25.85%
Cost of debt	7.50% - 8.90%	8.20%
WACC	13.0% - 15.6%	14.3%

WACC

506528.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	16.60%

Tax rate	25.00%	26.70%
Debt/Equity ratio	0.1	0.1
Cost of debt	7.50%	8.90%

After-tax WACC	13.0%	15.6%


Selected WACC	14.3%

506528.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 506528.BO:

cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.