BHAGYANGR.NS WACC - Weighted Average Cost of Capital

The WACC of Bhagyanagar India Ltd (BHAGYANGR.NS) is 16.0%.

The Cost of Equity of Bhagyanagar India Ltd (BHAGYANGR.NS) is 18.50%.

The Cost of Debt of Bhagyanagar India Ltd (BHAGYANGR.NS) is 9.45%.

	Range	Selected
Cost of equity	16.50% - 20.50%	18.50%
Tax rate	22.20% - 27.00%	24.60%
Cost of debt	9.10% - 9.80%	9.45%
WACC	14.5% - 17.6%	16.0%

WACC

BHAGYANGR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.16	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.50%	20.50%

Tax rate	22.20%	27.00%
Debt/Equity ratio	0.28	0.28
Cost of debt	9.10%	9.80%

After-tax WACC	14.5%	17.6%


Selected WACC	16.0%

BHAGYANGR.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 BHAGYANGR.NS:

cost_of_equity (18.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.16) + 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.