BRNL.NS WACC - Weighted Average Cost of Capital

The WACC of Bharat Road Network Ltd (BRNL.NS) is 19.1%.

The Cost of Equity of Bharat Road Network Ltd (BRNL.NS) is 47.90%.

The Cost of Debt of Bharat Road Network Ltd (BRNL.NS) is 16.00%.

	Range	Selected
Cost of equity	31.40% - 64.40%	47.90%
Tax rate	5.90% - 6.70%	6.30%
Cost of debt	8.10% - 23.90%	16.00%
WACC	10.6% - 27.6%	19.1%

WACC

BRNL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	2.95	6.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	31.40%	64.40%

Tax rate	5.90%	6.70%
Debt/Equity ratio	6.89	6.89
Cost of debt	8.10%	23.90%

After-tax WACC	10.6%	27.6%


Selected WACC	19.1%

BRNL.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 BRNL.NS:

cost_of_equity (47.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.95) + 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.