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.