BANG.NS WACC - Weighted Average Cost of Capital

The WACC of Bang Overseas Ltd (BANG.NS) is 9.9%.

The Cost of Equity of Bang Overseas Ltd (BANG.NS) is 12.10%.

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

	Range	Selected
Cost of equity	11.00% - 13.20%	12.10%
Tax rate	28.00% - 46.90%	37.45%
Cost of debt	4.00% - 7.00%	5.50%
WACC	9.0% - 10.8%	9.9%

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	0.5	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.20%

Tax rate	28.00%	46.90%
Debt/Equity ratio	0.34	0.34
Cost of debt	4.00%	7.00%

After-tax WACC	9.0%	10.8%


Selected WACC	9.9%

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 (12.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.