526731.BO
Bright Brothers Ltd
Price:  
376.00 
INR
Volume:  
3,923.00
India | Chemicals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

526731.BO WACC - Weighted Average Cost of Capital

The WACC of Bright Brothers Ltd (526731.BO) is 15.5%.

The Cost of Equity of Bright Brothers Ltd (526731.BO) is 16.15%.
The Cost of Debt of Bright Brothers Ltd (526731.BO) is 16.85%.

Range Selected
Cost of equity 14.30% - 18.00% 16.15%
Tax rate 20.10% - 26.10% 23.10%
Cost of debt 10.00% - 23.70% 16.85%
WACC 13.0% - 17.9% 15.5%
WACC

526731.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.9 1.09
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.30% 18.00%
Tax rate 20.10% 26.10%
Debt/Equity ratio 0.26 0.26
Cost of debt 10.00% 23.70%
After-tax WACC 13.0% 17.9%
Selected WACC 15.5%

526731.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 526731.BO:

cost_of_equity (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.