BRIGADE.NS WACC - Weighted Average Cost of Capital

The WACC of Brigade Enterprises Ltd (BRIGADE.NS) is 14.0%.

The Cost of Equity of Brigade Enterprises Ltd (BRIGADE.NS) is 15.55%.

The Cost of Debt of Brigade Enterprises Ltd (BRIGADE.NS) is 9.50%.

	Range	Selected
Cost of equity	11.30% - 19.80%	15.55%
Tax rate	26.90% - 31.80%	29.35%
Cost of debt	9.00% - 10.00%	9.50%
WACC	10.5% - 17.6%	14.0%

WACC

BRIGADE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	19.80%

Tax rate	26.90%	31.80%
Debt/Equity ratio	0.21	0.21
Cost of debt	9.00%	10.00%

After-tax WACC	10.5%	17.6%


Selected WACC	14.0%

BRIGADE.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 BRIGADE.NS:

cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.