505690.BO WACC - Weighted Average Cost of Capital

The WACC of Brady And Morris Engineering Co Ltd (505690.BO) is 13.1%.

The Cost of Equity of Brady And Morris Engineering Co Ltd (505690.BO) is 13.40%.

The Cost of Debt of Brady And Morris Engineering Co Ltd (505690.BO) is 5.75%.

	Range	Selected
Cost of equity	11.20% - 15.60%	13.40%
Tax rate	19.50% - 26.80%	23.15%
Cost of debt	4.00% - 7.50%	5.75%
WACC	10.9% - 15.3%	13.1%

WACC

505690.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.52	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.60%

Tax rate	19.50%	26.80%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	7.50%

After-tax WACC	10.9%	15.3%


Selected WACC	13.1%

505690.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 505690.BO:

cost_of_equity (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.52) + 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.