BOSCHLTD.NS WACC - Weighted Average Cost of Capital
The WACC of Bosch Ltd (BOSCHLTD.NS) is 15.6%.
| Range | Selected | |
| Cost of equity | 13.5% - 17.8% | 15.65% |
| Tax rate | 19.9% - 21.1% | 20.5% |
| Cost of debt | 7.0% - 12.2% | 9.6% |
| WACC | 13.5% - 17.7% | 15.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.8 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.5% | 17.8% |
| Tax rate | 19.9% | 21.1% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.0% | 12.2% |
| After-tax WACC | 13.5% | 17.7% |
| Selected WACC | 15.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BOSCHLTD.NS | Bosch Ltd | 0 | 1.15 | 1.15 |
| BHARATFORG.NS | Bharat Forge Ltd | 0.13 | 1.39 | 1.26 |
| ENDURANCE.NS | Endurance Technologies Ltd (CN) | 0.02 | 0.67 | 0.66 |
| EXIDEIND.NS | Exide Industries Ltd | 0.03 | 1.14 | 1.11 |
| MAHINDCIE.NS | Mahindra CIE Automotive Ltd | 0.05 | 0.74 | 0.71 |
| MINDAIND.NS | Minda Industries Ltd | 0.03 | 1.1 | 1.08 |
| SSWL.NS | Steel Strips Wheels Ltd | 0.29 | 0.82 | 0.67 |
| SUNCLAYLTD.NS | Sundaram Clayton Ltd | 2.5 | 0.24 | 0.08 |
| TIINDIA.NS | Tube Investments of India Ltd | 0.04 | 1.27 | 1.23 |
| WABCOINDIA.NS | Wabco India Ltd | 0 | 0.22 | 0.22 |
| Low | High | |
| Unlevered beta | 0.7 | 1.09 |
| Relevered beta | 0.7 | 1.09 |
| Adjusted relevered beta | 0.8 | 1.06 |
BOSCHLTD.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 BOSCHLTD.NS:
cost_of_equity (15.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.