BIL.NS WACC - Weighted Average Cost of Capital

The WACC of Bhartiya International Ltd (BIL.NS) is 12.8%.

The Cost of Equity of Bhartiya International Ltd (BIL.NS) is 15.75%.

The Cost of Debt of Bhartiya International Ltd (BIL.NS) is 9.75%.

	Range	Selected
Cost of equity	14.10% - 17.40%	15.75%
Tax rate	25.90% - 42.10%	34.00%
Cost of debt	7.40% - 12.10%	9.75%
WACC	11.4% - 14.2%	12.8%

WACC

BIL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	17.40%

Tax rate	25.90%	42.10%
Debt/Equity ratio	0.45	0.45
Cost of debt	7.40%	12.10%

After-tax WACC	11.4%	14.2%


Selected WACC	12.8%

BIL.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 BIL.NS:

cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.