523248.BO WACC - Weighted Average Cost of Capital

The WACC of Machino Plastics Ltd (523248.BO) is 13.1%.

The Cost of Equity of Machino Plastics Ltd (523248.BO) is 19.85%.

The Cost of Debt of Machino Plastics Ltd (523248.BO) is 10.25%.

	Range	Selected
Cost of equity	18.10% - 21.60%	19.85%
Tax rate	27.00% - 28.30%	27.65%
Cost of debt	8.40% - 12.10%	10.25%
WACC	11.6% - 14.6%	13.1%

WACC

523248.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.36	1.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.10%	21.60%

Tax rate	27.00%	28.30%
Debt/Equity ratio	1.18	1.18
Cost of debt	8.40%	12.10%

After-tax WACC	11.6%	14.6%


Selected WACC	13.1%

523248.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 523248.BO:

cost_of_equity (19.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.36) + 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.