502175.BO WACC - Weighted Average Cost of Capital

The WACC of Saurashtra Cement Ltd (502175.BO) is 13.5%.

The Cost of Equity of Saurashtra Cement Ltd (502175.BO) is 13.70%.

The Cost of Debt of Saurashtra Cement Ltd (502175.BO) is 12.60%.

	Range	Selected
Cost of equity	12.00% - 15.40%	13.70%
Tax rate	27.20% - 28.20%	27.70%
Cost of debt	9.00% - 16.20%	12.60%
WACC	11.7% - 15.2%	13.5%

WACC

502175.BO WACC calculation

Category	Low	High

Long-term bond rate	7.1%	7.6%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.59	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	15.40%

Tax rate	27.20%	28.20%
Debt/Equity ratio	0.05	0.05
Cost of debt	9.00%	16.20%

After-tax WACC	11.7%	15.2%


Selected WACC	13.5%

502175.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 502175.BO:

cost_of_equity (13.70%) = risk_free_rate (7.35%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.