BHARTIARTL.NS WACC - Weighted Average Cost of Capital

The WACC of Bharti Airtel Ltd (BHARTIARTL.NS) is 10.1%.

The Cost of Equity of Bharti Airtel Ltd (BHARTIARTL.NS) is 11.00%.

The Cost of Debt of Bharti Airtel Ltd (BHARTIARTL.NS) is 8.15%.

	Range	Selected
Cost of equity	9.80% - 12.20%	11.00%
Tax rate	30.40% - 32.90%	31.65%
Cost of debt	5.80% - 10.50%	8.15%
WACC	8.9% - 11.4%	10.1%

WACC

BHARTIARTL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.35	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.20%

Tax rate	30.40%	32.90%
Debt/Equity ratio	0.19	0.19
Cost of debt	5.80%	10.50%

After-tax WACC	8.9%	11.4%


Selected WACC	10.1%

BHARTIARTL.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 BHARTIARTL.NS:

cost_of_equity (11.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.