526588.BO WACC - Weighted Average Cost of Capital

The WACC of Photoquip (India) Ltd (526588.BO) is 11.0%.

The Cost of Equity of Photoquip (India) Ltd (526588.BO) is 11.80%.

The Cost of Debt of Photoquip (India) Ltd (526588.BO) is 14.50%.

	Range	Selected
Cost of equity	10.70% - 12.90%	11.80%
Tax rate	27.90% - 29.80%	28.85%
Cost of debt	10.40% - 18.60%	14.50%
WACC	9.0% - 13.0%	11.0%

WACC

526588.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.46	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	12.90%

Tax rate	27.90%	29.80%
Debt/Equity ratio	1.08	1.08
Cost of debt	10.40%	18.60%

After-tax WACC	9.0%	13.0%


Selected WACC	11.0%

526588.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 526588.BO:

cost_of_equity (11.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.