BAGFILMS.NS WACC - Weighted Average Cost of Capital

The WACC of B.A.G. Films and Media Ltd (BAGFILMS.NS) is 11.3%.

The Cost of Equity of B.A.G. Films and Media Ltd (BAGFILMS.NS) is 11.80%.

The Cost of Debt of B.A.G. Films and Media Ltd (BAGFILMS.NS) is 12.65%.

	Range	Selected
Cost of equity	10.50% - 13.10%	11.80%
Tax rate	12.50% - 18.20%	15.35%
Cost of debt	10.50% - 14.80%	12.65%
WACC	9.9% - 12.7%	11.3%

WACC

BAGFILMS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.10%

Tax rate	12.50%	18.20%
Debt/Equity ratio	0.83	0.83
Cost of debt	10.50%	14.80%

After-tax WACC	9.9%	12.7%


Selected WACC	11.3%

BAGFILMS.NS'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 BAGFILMS.NS:

cost_of_equity (11.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.