BCP.NS WACC - Weighted Average Cost of Capital

The WACC of BC Power Controls Ltd (BCP.NS) is 13.9%.

The Cost of Equity of BC Power Controls Ltd (BCP.NS) is 16.70%.

The Cost of Debt of BC Power Controls Ltd (BCP.NS) is 15.50%.

	Range	Selected
Cost of equity	13.90% - 19.50%	16.70%
Tax rate	27.60% - 29.80%	28.70%
Cost of debt	11.00% - 20.00%	15.50%
WACC	10.9% - 16.8%	13.9%

WACC

BCP.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.81	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	19.50%

Tax rate	27.60%	29.80%
Debt/Equity ratio	1	1
Cost of debt	11.00%	20.00%

After-tax WACC	10.9%	16.8%


Selected WACC	13.9%

BCP.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 BCP.NS:

cost_of_equity (16.70%) = risk_free_rate (7.45%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.