BHANDARI.NS WACC - Weighted Average Cost of Capital

The WACC of Bhandari Hosiery Exports Ltd (BHANDARI.NS) is 13.3%.

The Cost of Equity of Bhandari Hosiery Exports Ltd (BHANDARI.NS) is 17.10%.

The Cost of Debt of Bhandari Hosiery Exports Ltd (BHANDARI.NS) is 10.85%.

	Range	Selected
Cost of equity	15.20% - 19.00%	17.10%
Tax rate	16.60% - 19.10%	17.85%
Cost of debt	9.60% - 12.10%	10.85%
WACC	11.9% - 14.7%	13.3%

WACC

BHANDARI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.01	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.20%	19.00%

Tax rate	16.60%	19.10%
Debt/Equity ratio	0.87	0.87
Cost of debt	9.60%	12.10%

After-tax WACC	11.9%	14.7%


Selected WACC	13.3%

BHANDARI.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 BHANDARI.NS:

cost_of_equity (17.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.