541178.BO WACC - Weighted Average Cost of Capital

The WACC of Benara Bearings and Pistons Ltd (541178.BO) is 9.8%.

The Cost of Equity of Benara Bearings and Pistons Ltd (541178.BO) is 19.35%.

The Cost of Debt of Benara Bearings and Pistons Ltd (541178.BO) is 5.90%.

	Range	Selected
Cost of equity	16.80% - 21.90%	19.35%
Tax rate	24.20% - 26.80%	25.50%
Cost of debt	4.80% - 7.00%	5.90%
WACC	8.4% - 11.2%	9.8%

WACC

541178.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.2	1.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	21.90%

Tax rate	24.20%	26.80%
Debt/Equity ratio	1.76	1.76
Cost of debt	4.80%	7.00%

After-tax WACC	8.4%	11.2%


Selected WACC	9.8%

541178.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 541178.BO:

cost_of_equity (19.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.2) + 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.