542771.BO WACC - Weighted Average Cost of Capital

The WACC of Novateor Research Laboratories Ltd (542771.BO) is 11.1%.

The Cost of Equity of Novateor Research Laboratories Ltd (542771.BO) is 11.35%.

The Cost of Debt of Novateor Research Laboratories Ltd (542771.BO) is 8.15%.

	Range	Selected
Cost of equity	9.80% - 12.90%	11.35%
Tax rate	21.60% - 28.40%	25.00%
Cost of debt	4.20% - 12.10%	8.15%
WACC	9.5% - 12.7%	11.1%

WACC

542771.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.36	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.90%

Tax rate	21.60%	28.40%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.20%	12.10%

After-tax WACC	9.5%	12.7%


Selected WACC	11.1%

542771.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 542771.BO:

cost_of_equity (11.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.