542057.BO
BCPL Railway Infrastructure Ltd
Price:  
94.70 
INR
Volume:  
15,920.00
India | Construction & Engineering
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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 16.35%.
The Cost of Debt of BCPL Railway Infrastructure Ltd (542057.BO) is 28.15%.

Range Selected
Cost of equity 13.90% - 18.80% 16.35%
Tax rate 27.00% - 27.50% 27.25%
Cost of debt 8.10% - 48.20% 28.15%
WACC 12.3% - 22.1% 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 0.85 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.90% 18.80%
Tax rate 27.00% 27.50%
Debt/Equity ratio 0.25 0.25
Cost of debt 8.10% 48.20%
After-tax WACC 12.3% 22.1%
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 (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.