BEARDSELL.NS WACC - Weighted Average Cost of Capital

The WACC of Beardsell Ltd (BEARDSELL.NS) is 12.8%.

The Cost of Equity of Beardsell Ltd (BEARDSELL.NS) is 13.95%.

The Cost of Debt of Beardsell Ltd (BEARDSELL.NS) is 10.25%.

	Range	Selected
Cost of equity	11.50% - 16.40%	13.95%
Tax rate	27.00% - 30.30%	28.65%
Cost of debt	8.10% - 12.40%	10.25%
WACC	10.6% - 15.1%	12.8%

WACC

BEARDSELL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.55	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	16.40%

Tax rate	27.00%	30.30%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.10%	12.40%

After-tax WACC	10.6%	15.1%


Selected WACC	12.8%

BEARDSELL.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 BEARDSELL.NS:

cost_of_equity (13.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.