504646.BO WACC - Weighted Average Cost of Capital

The WACC of Bhagwati Autocast Ltd (504646.BO) is 13.1%.

The Cost of Equity of Bhagwati Autocast Ltd (504646.BO) is 13.70%.

The Cost of Debt of Bhagwati Autocast Ltd (504646.BO) is 10.25%.

	Range	Selected
Cost of equity	12.60% - 14.80%	13.70%
Tax rate	28.30% - 28.40%	28.35%
Cost of debt	7.80% - 12.70%	10.25%
WACC	11.9% - 14.2%	13.1%

WACC

504646.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.69	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	14.80%

Tax rate	28.30%	28.40%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.80%	12.70%

After-tax WACC	11.9%	14.2%


Selected WACC	13.1%

504646.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 504646.BO:

cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.69) + 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.