BRNL.NS WACC - Weighted Average Cost of Capital

The WACC of Bharat Road Network Ltd (BRNL.NS) is 17.7%.

The Cost of Equity of Bharat Road Network Ltd (BRNL.NS) is 24.60%.

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

	Range	Selected
Cost of equity	18.40% - 30.80%	24.60%
Tax rate	5.90% - 6.70%	6.30%
Cost of debt	8.10% - 23.90%	16.00%
WACC	10.7% - 24.7%	17.7%

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	1.39	2.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.40%	30.80%

Tax rate	5.90%	6.70%
Debt/Equity ratio	2.48	2.48
Cost of debt	8.10%	23.90%

After-tax WACC	10.7%	24.7%


Selected WACC	17.7%

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 (24.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.39) + 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.