BALAJITELE.NS WACC - Weighted Average Cost of Capital

The WACC of Balaji Telefilms Ltd (BALAJITELE.NS) is 12.1%.

The Cost of Equity of Balaji Telefilms Ltd (BALAJITELE.NS) is 12.30%.

The Cost of Debt of Balaji Telefilms Ltd (BALAJITELE.NS) is 6.90%.

	Range	Selected
Cost of equity	11.00% - 13.60%	12.30%
Tax rate	34.00% - 47.90%	40.95%
Cost of debt	6.80% - 7.00%	6.90%
WACC	10.9% - 13.4%	12.1%

WACC

BALAJITELE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.5	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.60%

Tax rate	34.00%	47.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	6.80%	7.00%

After-tax WACC	10.9%	13.4%


Selected WACC	12.1%

BALAJITELE.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 BALAJITELE.NS:

cost_of_equity (12.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.