BALAMINES.NS WACC - Weighted Average Cost of Capital

The WACC of Balaji Amines Ltd (BALAMINES.NS) is 15.6%.

The Cost of Equity of Balaji Amines Ltd (BALAMINES.NS) is 15.65%.

The Cost of Debt of Balaji Amines Ltd (BALAMINES.NS) is 10.70%.

	Range	Selected
Cost of equity	14.00% - 17.30%	15.65%
Tax rate	25.50% - 26.50%	26.00%
Cost of debt	7.50% - 13.90%	10.70%
WACC	14.0% - 17.2%	15.6%

WACC

BALAMINES.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.86	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.30%

Tax rate	25.50%	26.50%
Debt/Equity ratio	0	0
Cost of debt	7.50%	13.90%

After-tax WACC	14.0%	17.2%


Selected WACC	15.6%

BALAMINES.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 BALAMINES.NS:

cost_of_equity (15.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.