519532.BO WACC - Weighted Average Cost of Capital

The WACC of Asian Tea & Exports Ltd (519532.BO) is 14.6%.

The Cost of Equity of Asian Tea & Exports Ltd (519532.BO) is 15.55%.

The Cost of Debt of Asian Tea & Exports Ltd (519532.BO) is 15.35%.

	Range	Selected
Cost of equity	14.00% - 17.10%	15.55%
Tax rate	8.60% - 14.40%	11.50%
Cost of debt	6.80% - 23.90%	15.35%
WACC	10.8% - 18.5%	14.6%

WACC

519532.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.85	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.10%

Tax rate	8.60%	14.40%
Debt/Equity ratio	0.7	0.7
Cost of debt	6.80%	23.90%

After-tax WACC	10.8%	18.5%


Selected WACC	14.6%

519532.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 519532.BO:

cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.