BLS.NS WACC - Weighted Average Cost of Capital

The WACC of BLS International Services Ltd (BLS.NS) is 18.0%.

The Cost of Equity of BLS International Services Ltd (BLS.NS) is 17.95%.

The Cost of Debt of BLS International Services Ltd (BLS.NS) is 25.30%.

	Range	Selected
Cost of equity	16.30% - 19.60%	17.95%
Tax rate	4.30% - 5.60%	4.95%
Cost of debt	7.50% - 43.10%	25.30%
WACC	16.3% - 19.7%	18.0%

WACC

BLS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.14	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.30%	19.60%

Tax rate	4.30%	5.60%
Debt/Equity ratio	0	0
Cost of debt	7.50%	43.10%

After-tax WACC	16.3%	19.7%


Selected WACC	18.0%

BLS.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 BLS.NS:

cost_of_equity (17.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.14) + 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.