533095.BO
Bengal & Assam Company Ltd
Price:  
8,111.00 
INR
Volume:  
431.00
India | Capital Markets
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

533095.BO WACC - Weighted Average Cost of Capital

The WACC of Bengal & Assam Company Ltd (533095.BO) is 13.6%.

The Cost of Equity of Bengal & Assam Company Ltd (533095.BO) is 13.85%.
The Cost of Debt of Bengal & Assam Company Ltd (533095.BO) is 6.95%.

Range Selected
Cost of equity 12.10% - 15.60% 13.85%
Tax rate 29.40% - 33.10% 31.25%
Cost of debt 6.10% - 7.80% 6.95%
WACC 11.9% - 15.2% 13.6%
WACC

533095.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.63 0.83
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.10% 15.60%
Tax rate 29.40% 33.10%
Debt/Equity ratio 0.03 0.03
Cost of debt 6.10% 7.80%
After-tax WACC 11.9% 15.2%
Selected WACC 13.6%

533095.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 533095.BO:

cost_of_equity (13.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.