BIGBLOC.NS WACC - Weighted Average Cost of Capital

The WACC of Bigbloc Construction Ltd (BIGBLOC.NS) is 12.8%.

The Cost of Equity of Bigbloc Construction Ltd (BIGBLOC.NS) is 13.85%.

The Cost of Debt of Bigbloc Construction Ltd (BIGBLOC.NS) is 8.05%.

	Range	Selected
Cost of equity	12.10% - 15.60%	13.85%
Tax rate	19.60% - 25.50%	22.55%
Cost of debt	4.00% - 12.10%	8.05%
WACC	10.9% - 14.7%	12.8%

WACC

BIGBLOC.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	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	15.60%

Tax rate	19.60%	25.50%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.00%	12.10%

After-tax WACC	10.9%	14.7%


Selected WACC	12.8%

BIGBLOC.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 BIGBLOC.NS:

cost_of_equity (13.85%) = 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.