530809.BO WACC - Weighted Average Cost of Capital

The WACC of BNR Udyog Ltd (530809.BO) is 10.9%.

The Cost of Equity of BNR Udyog Ltd (530809.BO) is 16.15%.

The Cost of Debt of BNR Udyog Ltd (530809.BO) is 7.50%.

	Range	Selected
Cost of equity	10.40% - 21.90%	16.15%
Tax rate	18.10% - 28.80%	23.45%
Cost of debt	7.50% - 7.50%	7.50%
WACC	8.2% - 13.6%	10.9%

WACC

530809.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	1.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	21.90%

Tax rate	18.10%	28.80%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	8.2%	13.6%


Selected WACC	10.9%

530809.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 530809.BO:

cost_of_equity (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.