517166.BO WACC - Weighted Average Cost of Capital

The WACC of SPEL Semiconductor Ltd (517166.BO) is 12.9%.

The Cost of Equity of SPEL Semiconductor Ltd (517166.BO) is 13.25%.

The Cost of Debt of SPEL Semiconductor Ltd (517166.BO) is 6.40%.

	Range	Selected
Cost of equity	10.60% - 15.90%	13.25%
Tax rate	2.40% - 2.50%	2.45%
Cost of debt	5.80% - 7.00%	6.40%
WACC	10.4% - 15.5%	12.9%

WACC

517166.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	15.90%

Tax rate	2.40%	2.50%
Debt/Equity ratio	0.04	0.04
Cost of debt	5.80%	7.00%

After-tax WACC	10.4%	15.5%


Selected WACC	12.9%

517166.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 517166.BO:

cost_of_equity (13.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.