513295.BO WACC - Weighted Average Cost of Capital

The WACC of IMEC Services Ltd (513295.BO) is 13.1%.

The Cost of Equity of IMEC Services Ltd (513295.BO) is 18.70%.

The Cost of Debt of IMEC Services Ltd (513295.BO) is 7.50%.

	Range	Selected
Cost of equity	15.70% - 21.70%	18.70%
Tax rate	-% - -%	-%
Cost of debt	7.50% - 7.50%	7.50%
WACC	11.6% - 14.6%	13.1%

WACC

513295.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.06	1.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.70%	21.70%

Tax rate	-%	-%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	11.6%	14.6%


Selected WACC	13.1%

513295.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 513295.BO:

cost_of_equity (18.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.06) + 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.