BALLARPUR.NS WACC - Weighted Average Cost of Capital

The WACC of Ballarpur Industries Ltd (BALLARPUR.NS) is 14.3%.

The Cost of Equity of Ballarpur Industries Ltd (BALLARPUR.NS) is 29,740.60%.

The Cost of Debt of Ballarpur Industries Ltd (BALLARPUR.NS) is 14.15%.

	Range	Selected
Cost of equity	18,762.50% - 40,718.70%	29,740.60%
Tax rate	6.40% - 10.90%	8.65%
Cost of debt	4.40% - 23.90%	14.15%
WACC	5.2% - 23.4%	14.3%

WACC

BALLARPUR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	2256.99	4372.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	18,762.50%	40,718.70%

Tax rate	6.40%	10.90%
Debt/Equity ratio	18662.45	18662.45
Cost of debt	4.40%	23.90%

After-tax WACC	5.2%	23.4%


Selected WACC	14.3%

BALLARPUR.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 BALLARPUR.NS:

cost_of_equity (29,740.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2256.99) + 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.