BORORENEW.NS WACC - Weighted Average Cost of Capital

The WACC of Borosil Renewables Ltd (BORORENEW.NS) is 16.2%.

The Cost of Equity of Borosil Renewables Ltd (BORORENEW.NS) is 17.10%.

The Cost of Debt of Borosil Renewables Ltd (BORORENEW.NS) is 7.85%.

	Range	Selected
Cost of equity	14.60% - 19.60%	17.10%
Tax rate	27.90% - 34.60%	31.25%
Cost of debt	7.00% - 8.70%	7.85%
WACC	13.9% - 18.5%	16.2%

WACC

BORORENEW.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.93	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	19.60%

Tax rate	27.90%	34.60%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.00%	8.70%

After-tax WACC	13.9%	18.5%


Selected WACC	16.2%

BORORENEW.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 BORORENEW.NS:

cost_of_equity (17.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.