530249.BO WACC - Weighted Average Cost of Capital

The WACC of Bridge Securities Ltd (530249.BO) is 14.4%.

The Cost of Equity of Bridge Securities Ltd (530249.BO) is 14.40%.

The Cost of Debt of Bridge Securities Ltd (530249.BO) is 7.50%.

	Range	Selected
Cost of equity	12.30% - 16.50%	14.40%
Tax rate	0.40% - 6.90%	3.65%
Cost of debt	7.50% - 7.50%	7.50%
WACC	12.3% - 16.5%	14.4%

WACC

530249.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	16.50%

Tax rate	0.40%	6.90%
Debt/Equity ratio	0	0
Cost of debt	7.50%	7.50%

After-tax WACC	12.3%	16.5%


Selected WACC	14.4%

530249.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 530249.BO:

cost_of_equity (14.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.