BIL.NS
Bhartiya International Ltd
Price:  
729.95 
INR
Volume:  
2,892
India | Textiles, Apparel & Luxury Goods

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 16.15%.
The Cost of Debt of Bhartiya International Ltd (BIL.NS) is 9.75%.

RangeSelected
Cost of equity14.5% - 17.8%16.15%
Tax rate25.9% - 42.1%34%
Cost of debt7.4% - 12.1%9.75%
WACC11.5% - 14.2%12.8%
WACC

BIL.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.921.07
Additional risk adjustments0.0%0.5%
Cost of equity14.5%17.8%
Tax rate25.9%42.1%
Debt/Equity ratio
0.510.51
Cost of debt7.4%12.1%
After-tax WACC11.5%14.2%
Selected WACC12.8%

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 (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.