533095.BO
Bengal & Assam Company Ltd
Price:  
8,399.9 
INR
Volume:  
151
India | Capital Markets

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 13.9%.
The Cost of Debt of Bengal & Assam Company Ltd (533095.BO) is 6.95%.

RangeSelected
Cost of equity12.1% - 15.7%13.9%
Tax rate29.4% - 33.1%31.25%
Cost of debt6.1% - 7.8%6.95%
WACC11.9% - 15.4%13.6%
WACC

533095.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.630.85
Additional risk adjustments0.0%0.5%
Cost of equity12.1%15.7%
Tax rate29.4%33.1%
Debt/Equity ratio
0.030.03
Cost of debt6.1%7.8%
After-tax WACC11.9%15.4%
Selected WACC13.6%

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 (13.90%) = 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.