The WACC of Bartronics India Ltd (BARTRONICS.NS) is 6.2%.
| Range | Selected | |
| Cost of equity | 162.20% - 224.00% | 193.10% |
| Tax rate | 1.90% - 5.20% | 3.55% |
| Cost of debt | 5.00% - 5.00% | 5.00% |
| WACC | 6.0% - 6.3% | 6.2% |
| Category | Low | High |
| Long-term bond rate | 7.4% | 7.9% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 22.36 | 27.21 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 162.20% | 224.00% |
| Tax rate | 1.90% | 5.20% |
| Debt/Equity ratio | 136.6 | 136.6 |
| Cost of debt | 5.00% | 5.00% |
| After-tax WACC | 6.0% | 6.3% |
| Selected WACC | 6.2% | |
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 BARTRONICS.NS:
cost_of_equity (193.10%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (22.36) + 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.