BANCOINDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Banco Products (India) Ltd (BANCOINDIA.NS) is 15.7%.

The Cost of Equity of Banco Products (India) Ltd (BANCOINDIA.NS) is 16.35%.

The Cost of Debt of Banco Products (India) Ltd (BANCOINDIA.NS) is 10.90%.

	Range	Selected
Cost of equity	14.70% - 18.00%	16.35%
Tax rate	24.80% - 27.60%	26.20%
Cost of debt	7.50% - 14.30%	10.90%
WACC	14.0% - 17.4%	15.7%

WACC

BANCOINDIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.94	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.70%	18.00%

Tax rate	24.80%	27.60%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.50%	14.30%

After-tax WACC	14.0%	17.4%


Selected WACC	15.7%

BANCOINDIA.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 BANCOINDIA.NS:

cost_of_equity (16.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.