BERGEPAINT.NS WACC - Weighted Average Cost of Capital

The WACC of Berger Paints India Ltd (BERGEPAINT.NS) is 14.8%.

The Cost of Equity of Berger Paints India Ltd (BERGEPAINT.NS) is 14.85%.

The Cost of Debt of Berger Paints India Ltd (BERGEPAINT.NS) is 5.75%.

	Range	Selected
Cost of equity	13.80% - 15.90%	14.85%
Tax rate	25.90% - 26.20%	26.05%
Cost of debt	4.00% - 7.50%	5.75%
WACC	13.7% - 15.8%	14.8%

WACC

BERGEPAINT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	15.90%

Tax rate	25.90%	26.20%
Debt/Equity ratio	0.01	0.01
Cost of debt	4.00%	7.50%

After-tax WACC	13.7%	15.8%


Selected WACC	14.8%

BERGEPAINT.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 BERGEPAINT.NS:

cost_of_equity (14.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.