BHAGYANGR.NS WACC - Weighted Average Cost of Capital

The WACC of Bhagyanagar India Ltd (BHAGYANGR.NS) is 13.7%.

The Cost of Equity of Bhagyanagar India Ltd (BHAGYANGR.NS) is 17.70%.

The Cost of Debt of Bhagyanagar India Ltd (BHAGYANGR.NS) is 9.45%.

	Range	Selected
Cost of equity	15.80% - 19.60%	17.70%
Tax rate	22.20% - 27.00%	24.60%
Cost of debt	9.10% - 9.80%	9.45%
WACC	12.5% - 14.9%	13.7%

WACC

BHAGYANGR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.07	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.80%	19.60%

Tax rate	22.20%	27.00%
Debt/Equity ratio	0.6	0.6
Cost of debt	9.10%	9.80%

After-tax WACC	12.5%	14.9%


Selected WACC	13.7%

BHAGYANGR.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 BHAGYANGR.NS:

cost_of_equity (17.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.07) + 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.