BLUEDART.NS WACC - Weighted Average Cost of Capital

The WACC of Blue Dart Express Ltd (BLUEDART.NS) is 15.2%.

The Cost of Equity of Blue Dart Express Ltd (BLUEDART.NS) is 16.05%.

The Cost of Debt of Blue Dart Express Ltd (BLUEDART.NS) is 7.35%.

	Range	Selected
Cost of equity	14.10% - 18.00%	16.05%
Tax rate	26.40% - 27.10%	26.75%
Cost of debt	6.60% - 8.10%	7.35%
WACC	13.3% - 17.0%	15.2%

WACC

BLUEDART.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	18.00%

Tax rate	26.40%	27.10%
Debt/Equity ratio	0.09	0.09
Cost of debt	6.60%	8.10%

After-tax WACC	13.3%	17.0%


Selected WACC	15.2%

BLUEDART.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 BLUEDART.NS:

cost_of_equity (16.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.