524663.BO WACC - Weighted Average Cost of Capital

The WACC of Bharat Immunologicals and Biologicals Corporation Ltd (524663.BO) is 17.4%.

The Cost of Equity of Bharat Immunologicals and Biologicals Corporation Ltd (524663.BO) is 14.35%.

The Cost of Debt of Bharat Immunologicals and Biologicals Corporation Ltd (524663.BO) is 28.50%.

	Range	Selected
Cost of equity	12.30% - 16.40%	14.35%
Tax rate	23.70% - 25.30%	24.50%
Cost of debt	7.00% - 50.00%	28.50%
WACC	9.3% - 25.4%	17.4%

WACC

524663.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	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	16.40%

Tax rate	23.70%	25.30%
Debt/Equity ratio	0.75	0.75
Cost of debt	7.00%	50.00%

After-tax WACC	9.3%	25.4%


Selected WACC	17.4%

524663.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 524663.BO:

cost_of_equity (14.35%) = 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.