542057.BO WACC - Weighted Average Cost of Capital

The WACC of BCPL Railway Infrastructure Ltd (542057.BO) is 17.2%.

The Cost of Equity of BCPL Railway Infrastructure Ltd (542057.BO) is 15.45%.

The Cost of Debt of BCPL Railway Infrastructure Ltd (542057.BO) is 28.50%.

	Range	Selected
Cost of equity	14.00% - 16.90%	15.45%
Tax rate	26.30% - 26.80%	26.55%
Cost of debt	10.50% - 46.50%	28.50%
WACC	11.9% - 22.5%	17.2%

WACC

542057.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.86	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	16.90%

Tax rate	26.30%	26.80%
Debt/Equity ratio	0.49	0.49
Cost of debt	10.50%	46.50%

After-tax WACC	11.9%	22.5%


Selected WACC	17.2%

542057.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 542057.BO:

cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.