BOROLTD.NS WACC - Weighted Average Cost of Capital

The WACC of Borosil Ltd (BOROLTD.NS) is 12.5%.

The Cost of Equity of Borosil Ltd (BOROLTD.NS) is 12.40%.

The Cost of Debt of Borosil Ltd (BOROLTD.NS) is 19.45%.

	Range	Selected
Cost of equity	11.00% - 13.80%	12.40%
Tax rate	23.60% - 27.10%	25.35%
Cost of debt	7.80% - 31.10%	19.45%
WACC	10.8% - 14.1%	12.5%

WACC

BOROLTD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.5	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	13.80%

Tax rate	23.60%	27.10%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.80%	31.10%

After-tax WACC	10.8%	14.1%


Selected WACC	12.5%

BOROLTD.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 BOROLTD.NS:

cost_of_equity (12.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.