504646.BO WACC - Weighted Average Cost of Capital

The WACC of Bhagwati Autocast Ltd (504646.BO) is 12.9%.

The Cost of Equity of Bhagwati Autocast Ltd (504646.BO) is 13.40%.

The Cost of Debt of Bhagwati Autocast Ltd (504646.BO) is 9.35%.

	Range	Selected
Cost of equity	12.30% - 14.50%	13.40%
Tax rate	28.30% - 28.50%	28.40%
Cost of debt	7.90% - 10.80%	9.35%
WACC	11.8% - 13.9%	12.9%

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	0.65	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	14.50%

Tax rate	28.30%	28.50%
Debt/Equity ratio	0.09	0.09
Cost of debt	7.90%	10.80%

After-tax WACC	11.8%	13.9%


Selected WACC	12.9%

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 (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.