BIRLAMONEY.NS
Aditya Birla Money Ltd
Price:  
170.00 
INR
Volume:  
36,136.00
India | Capital Markets
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BIRLAMONEY.NS WACC - Weighted Average Cost of Capital

The WACC of Aditya Birla Money Ltd (BIRLAMONEY.NS) is 12.3%.

The Cost of Equity of Aditya Birla Money Ltd (BIRLAMONEY.NS) is 21.75%.
The Cost of Debt of Aditya Birla Money Ltd (BIRLAMONEY.NS) is 9.70%.

Range Selected
Cost of equity 19.50% - 24.00% 21.75%
Tax rate 26.90% - 27.20% 27.05%
Cost of debt 7.30% - 12.10% 9.70%
WACC 10.4% - 14.3% 12.3%
WACC

BIRLAMONEY.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.52 1.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 19.50% 24.00%
Tax rate 26.90% 27.20%
Debt/Equity ratio 1.78 1.78
Cost of debt 7.30% 12.10%
After-tax WACC 10.4% 14.3%
Selected WACC 12.3%

BIRLAMONEY.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 BIRLAMONEY.NS:

cost_of_equity (21.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.52) + 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.