500319.BO
Indian Sucrose Ltd
Price:  
99.90 
INR
Volume:  
1,048.00
India | Food Products
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500319.BO WACC - Weighted Average Cost of Capital

The WACC of Indian Sucrose Ltd (500319.BO) is 12.8%.

The Cost of Equity of Indian Sucrose Ltd (500319.BO) is 19.50%.
The Cost of Debt of Indian Sucrose Ltd (500319.BO) is 10.45%.

Range Selected
Cost of equity 16.80% - 22.20% 19.50%
Tax rate 26.50% - 26.90% 26.70%
Cost of debt 9.10% - 11.80% 10.45%
WACC 11.1% - 14.6% 12.8%
WACC

500319.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.2 1.54
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.80% 22.20%
Tax rate 26.50% 26.90%
Debt/Equity ratio 1.29 1.29
Cost of debt 9.10% 11.80%
After-tax WACC 11.1% 14.6%
Selected WACC 12.8%

500319.BO'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 500319.BO:

cost_of_equity (19.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.2) + 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.