BALLARPUR.NS WACC - Weighted Average Cost of Capital

The WACC of Ballarpur Industries Ltd (BALLARPUR.NS) is 14.4%.

The Cost of Equity of Ballarpur Industries Ltd (BALLARPUR.NS) is 30,989.30%.

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

	Range	Selected
Cost of equity	18,851.30% - 43,127.30%	30,989.30%
Tax rate	6.40% - 10.90%	8.65%
Cost of debt	4.40% - 23.90%	14.15%
WACC	5.2% - 23.6%	14.4%

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	2267.68	4631.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	18,851.30%	43,127.30%

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%	23.6%


Selected WACC	14.4%

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 (30,989.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2267.68) + 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.