BANG.NS WACC - Weighted Average Cost of Capital

The WACC of Bang Overseas Ltd (BANG.NS) is 9.7%.

The Cost of Equity of Bang Overseas Ltd (BANG.NS) is 11.75%.

The Cost of Debt of Bang Overseas Ltd (BANG.NS) is 5.50%.

	Range	Selected
Cost of equity	10.60% - 12.90%	11.75%
Tax rate	3.50% - 22.30%	12.90%
Cost of debt	4.00% - 7.00%	5.50%
WACC	8.6% - 10.7%	9.7%

WACC

BANG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	0.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	12.90%

Tax rate	3.50%	22.30%
Debt/Equity ratio	0.42	0.42
Cost of debt	4.00%	7.00%

After-tax WACC	8.6%	10.7%


Selected WACC	9.7%

BANG.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 BANG.NS:

cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.