532380.BO
Baba Arts Ltd
Price:  
9.15 
INR
Volume:  
10,567.00
India | Entertainment
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532380.BO WACC - Weighted Average Cost of Capital

The WACC of Baba Arts Ltd (532380.BO) is 10.8%.

The Cost of Equity of Baba Arts Ltd (532380.BO) is 17.90%.
The Cost of Debt of Baba Arts Ltd (532380.BO) is 5.00%.

Range Selected
Cost of equity 16.60% - 19.20% 17.90%
Tax rate 24.80% - 26.50% 25.65%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.2% - 11.4% 10.8%
WACC

532380.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.17 1.21
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.60% 19.20%
Tax rate 24.80% 26.50%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 10.2% 11.4%
Selected WACC 10.8%

532380.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 532380.BO:

cost_of_equity (17.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.17) + 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.