BSL.NS WACC - Weighted Average Cost of Capital

The WACC of BSL Ltd (BSL.NS) is 13.2%.

The Cost of Equity of BSL Ltd (BSL.NS) is 24.60%.

The Cost of Debt of BSL Ltd (BSL.NS) is 13.25%.

	Range	Selected
Cost of equity	18.90% - 30.30%	24.60%
Tax rate	24.40% - 24.90%	24.65%
Cost of debt	7.90% - 18.60%	13.25%
WACC	8.8% - 17.5%	13.2%

WACC

BSL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.44	2.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.90%	30.30%

Tax rate	24.40%	24.90%
Debt/Equity ratio	3.6	3.6
Cost of debt	7.90%	18.60%

After-tax WACC	8.8%	17.5%


Selected WACC	13.2%

BSL.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 BSL.NS:

cost_of_equity (24.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.44) + 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.