505681.BO WACC - Weighted Average Cost of Capital

The WACC of Bimetal Bearings Ltd (505681.BO) is 15.8%.

The Cost of Equity of Bimetal Bearings Ltd (505681.BO) is 16.25%.

The Cost of Debt of Bimetal Bearings Ltd (505681.BO) is 8.15%.

	Range	Selected
Cost of equity	14.90% - 17.60%	16.25%
Tax rate	21.60% - 23.40%	22.50%
Cost of debt	7.50% - 8.80%	8.15%
WACC	14.5% - 17.1%	15.8%

WACC

505681.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.96	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	17.60%

Tax rate	21.60%	23.40%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.50%	8.80%

After-tax WACC	14.5%	17.1%


Selected WACC	15.8%

505681.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 505681.BO:

cost_of_equity (16.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.