542669.BO
BMW Industries Ltd
Price:  
46.07 
INR
Volume:  
105,368.00
India | Metals & Mining
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542669.BO WACC - Weighted Average Cost of Capital

The WACC of BMW Industries Ltd (542669.BO) is 14.4%.

The Cost of Equity of BMW Industries Ltd (542669.BO) is 15.30%.
The Cost of Debt of BMW Industries Ltd (542669.BO) is 7.65%.

Range Selected
Cost of equity 13.00% - 17.60% 15.30%
Tax rate 25.20% - 26.60% 25.90%
Cost of debt 7.40% - 7.90% 7.65%
WACC 12.3% - 16.5% 14.4%
WACC

542669.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.73 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 17.60%
Tax rate 25.20% 26.60%
Debt/Equity ratio 0.1 0.1
Cost of debt 7.40% 7.90%
After-tax WACC 12.3% 16.5%
Selected WACC 14.4%

542669.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 542669.BO:

cost_of_equity (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.73) + 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.