BHAGYAPROP.NS WACC - Weighted Average Cost of Capital

The WACC of Bhagyanagar Properties Ltd (BHAGYAPROP.NS) is 12.8%.

The Cost of Equity of Bhagyanagar Properties Ltd (BHAGYAPROP.NS) is 14.15%.

The Cost of Debt of Bhagyanagar Properties Ltd (BHAGYAPROP.NS) is 5.00%.

	Range	Selected
Cost of equity	12.10% - 16.20%	14.15%
Tax rate	6.20% - 11.50%	8.85%
Cost of debt	5.00% - 5.00%	5.00%
WACC	11.1% - 14.6%	12.8%

WACC

BHAGYAPROP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.63	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	16.20%

Tax rate	6.20%	11.50%
Debt/Equity ratio	0.16	0.16
Cost of debt	5.00%	5.00%

After-tax WACC	11.1%	14.6%


Selected WACC	12.8%

BHAGYAPROP.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 BHAGYAPROP.NS:

cost_of_equity (14.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.