522105.BO
Birla Precision Technologies Ltd
Price:  
46.48 
INR
Volume:  
18,439
India | Machinery

522105.BO WACC - Weighted Average Cost of Capital

The WACC of Birla Precision Technologies Ltd (522105.BO) is 15.0%.

The Cost of Equity of Birla Precision Technologies Ltd (522105.BO) is 15.7%.
The Cost of Debt of Birla Precision Technologies Ltd (522105.BO) is 13.2%.

RangeSelected
Cost of equity13.8% - 17.6%15.7%
Tax rate17.3% - 28.9%23.1%
Cost of debt10.5% - 15.9%13.2%
WACC13.1% - 16.9%15.0%
WACC

522105.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.831.05
Additional risk adjustments0.0%0.5%
Cost of equity13.8%17.6%
Tax rate17.3%28.9%
Debt/Equity ratio
0.140.14
Cost of debt10.5%15.9%
After-tax WACC13.1%16.9%
Selected WACC15.0%

522105.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 522105.BO:

cost_of_equity (15.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.