BRIGADE.NS WACC - Weighted Average Cost of Capital

The WACC of Brigade Enterprises Ltd (BRIGADE.NS) is 13.2%.

The Cost of Equity of Brigade Enterprises Ltd (BRIGADE.NS) is 15.20%.

The Cost of Debt of Brigade Enterprises Ltd (BRIGADE.NS) is 9.55%.

	Range	Selected
Cost of equity	11.40% - 19.00%	15.20%
Tax rate	22.50% - 25.60%	24.05%
Cost of debt	9.10% - 10.00%	9.55%
WACC	10.3% - 16.2%	13.2%

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	0.54	1.2

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	19.00%

Tax rate	22.50%	25.60%
Debt/Equity ratio	0.32	0.32
Cost of debt	9.10%	10.00%

After-tax WACC	10.3%	16.2%


Selected WACC	13.2%

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 (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.