BHARTIARTL.NS WACC - Weighted Average Cost of Capital

The WACC of Bharti Airtel Ltd (BHARTIARTL.NS) is 10.7%.

The Cost of Equity of Bharti Airtel Ltd (BHARTIARTL.NS) is 11.85%.

The Cost of Debt of Bharti Airtel Ltd (BHARTIARTL.NS) is 7.35%.

	Range	Selected
Cost of equity	10.10% - 13.60%	11.85%
Tax rate	29.80% - 32.90%	31.35%
Cost of debt	6.60% - 8.10%	7.35%
WACC	9.2% - 12.3%	10.7%

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	0.39	0.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	13.60%

Tax rate	29.80%	32.90%
Debt/Equity ratio	0.19	0.19
Cost of debt	6.60%	8.10%

After-tax WACC	9.2%	12.3%


Selected WACC	10.7%

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 (11.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.