534063.BO WACC - Weighted Average Cost of Capital

The WACC of Futuristic Solutions Ltd (534063.BO) is 12.0%.

The Cost of Equity of Futuristic Solutions Ltd (534063.BO) is 12.05%.

The Cost of Debt of Futuristic Solutions Ltd (534063.BO) is 7.50%.

	Range	Selected
Cost of equity	10.70% - 13.40%	12.05%
Tax rate	19.50% - 23.60%	21.55%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.7% - 13.3%	12.0%

WACC

534063.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.47	0.59

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.40%

Tax rate	19.50%	23.60%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	7.50%

After-tax WACC	10.7%	13.3%


Selected WACC	12.0%

534063.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 534063.BO:

cost_of_equity (12.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.