530809.BO WACC - Weighted Average Cost of Capital

The WACC of BNR Udyog Ltd (530809.BO) is 11.8%.

The Cost of Equity of BNR Udyog Ltd (530809.BO) is 17.85%.

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

	Range	Selected
Cost of equity	10.60% - 25.10%	17.85%
Tax rate	18.10% - 29.30%	23.70%
Cost of debt	7.50% - 7.50%	7.50%
WACC	8.3% - 15.2%	11.8%

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	0.44	1.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	25.10%

Tax rate	18.10%	29.30%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	8.3%	15.2%


Selected WACC	11.8%

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 (17.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.