BAJAJHLDNG.NS WACC - Weighted Average Cost of Capital
The WACC of Bajaj Holdings and Investment Ltd (BAJAJHLDNG.NS) is 12.6%.
| Range | Selected | |
| Cost of equity | 9.9% - 15.4% | 12.65% |
| Tax rate | 2.1% - 2.6% | 2.35% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 9.9% - 15.4% | 12.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.36 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.9% | 15.4% |
| Tax rate | 2.1% | 2.6% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 9.9% | 15.4% |
| Selected WACC | 12.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BAJAJHLDNG.NS | Bajaj Holdings and Investment Ltd | 0 | 0.83 | 0.83 |
| 133.HK | China Merchants China Direct Investments Ltd | 0 | 0.79 | 0.79 |
| 2120.SR | Saudi Advanced Industries Company SJSC | 0.06 | 0.7 | 0.66 |
| 310.HK | Prosperity Investment Holdings Ltd | 0.67 | 0.01 | 0.01 |
| 4280.SR | Kingdom Holding Co | 0.47 | 1.28 | 0.88 |
| 501700.BO | Indianivesh Ltd | 2.8 | -0.26 | -0.07 |
| 512381.BO | Starteck Finance Ltd | 4.97 | -0.93 | -0.16 |
| 535566.BO | KIFS Financial Services Ltd | 2.12 | 0.01 | 0 |
| CREST.NS | Crest Ventures Ltd | 0.18 | 1.92 | 1.63 |
| P15.SI | Pacific Century Regional Developments Ltd | 0.2 | 0.09 | 0.08 |
| Low | High | |
| Unlevered beta | 0.05 | 0.71 |
| Relevered beta | 0.04 | 0.72 |
| Adjusted relevered beta | 0.36 | 0.81 |
BAJAJHLDNG.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 BAJAJHLDNG.NS:
cost_of_equity (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.