BALAJITELE.NS WACC - Weighted Average Cost of Capital

The WACC of Balaji Telefilms Ltd (BALAJITELE.NS) is 13.0%.

The Cost of Equity of Balaji Telefilms Ltd (BALAJITELE.NS) is 13.65%.

The Cost of Debt of Balaji Telefilms Ltd (BALAJITELE.NS) is 10.30%.

	Range	Selected
Cost of equity	11.60% - 15.70%	13.65%
Tax rate	28.20% - 47.90%	38.05%
Cost of debt	8.30% - 12.30%	10.30%
WACC	11.1% - 14.9%	13.0%

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	0.57	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	15.70%

Tax rate	28.20%	47.90%
Debt/Equity ratio	0.09	0.09
Cost of debt	8.30%	12.30%

After-tax WACC	11.1%	14.9%


Selected WACC	13.0%

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 (13.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.