531719.BO WACC - Weighted Average Cost of Capital

The WACC of Bhagiradha Chemicals and Industries Ltd (531719.BO) is 14.4%.

The Cost of Equity of Bhagiradha Chemicals and Industries Ltd (531719.BO) is 15.05%.

The Cost of Debt of Bhagiradha Chemicals and Industries Ltd (531719.BO) is 8.80%.

	Range	Selected
Cost of equity	13.30% - 16.80%	15.05%
Tax rate	33.30% - 46.80%	40.05%
Cost of debt	8.80% - 8.80%	8.80%
WACC	12.8% - 16.0%	14.4%

WACC

531719.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.84	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	16.80%

Tax rate	33.30%	46.80%
Debt/Equity ratio	0.07	0.07
Cost of debt	8.80%	8.80%

After-tax WACC	12.8%	16.0%


Selected WACC	14.4%

531719.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 531719.BO:

cost_of_equity (15.05%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.84) + 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.