519477.BO WACC - Weighted Average Cost of Capital

The WACC of Cian Agro Industries & Infrastructure Ltd (519477.BO) is 11.1%.

The Cost of Equity of Cian Agro Industries & Infrastructure Ltd (519477.BO) is 11.40%.

The Cost of Debt of Cian Agro Industries & Infrastructure Ltd (519477.BO) is 18.50%.

	Range	Selected
Cost of equity	10.20% - 12.60%	11.40%
Tax rate	29.40% - 49.50%	39.45%
Cost of debt	10.50% - 26.50%	18.50%
WACC	9.4% - 12.8%	11.1%

WACC

519477.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.60%

Tax rate	29.40%	49.50%
Debt/Equity ratio	0.39	0.39
Cost of debt	10.50%	26.50%

After-tax WACC	9.4%	12.8%


Selected WACC	11.1%

519477.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 519477.BO:

cost_of_equity (11.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.