508969.BO
Sulabh Engineers and Services Ltd
Price:  
3.69 
INR
Volume:  
26,335.00
India | Diversified Financial Services
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508969.BO WACC - Weighted Average Cost of Capital

The WACC of Sulabh Engineers and Services Ltd (508969.BO) is 10.0%.

The Cost of Equity of Sulabh Engineers and Services Ltd (508969.BO) is 10.15%.
The Cost of Debt of Sulabh Engineers and Services Ltd (508969.BO) is 7.50%.

Range Selected
Cost of equity 9.20% - 11.10% 10.15%
Tax rate 14.50% - 18.60% 16.55%
Cost of debt 7.50% - 7.50% 7.50%
WACC 9.1% - 11.0% 10.0%
WACC

508969.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.28 0.35
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.20% 11.10%
Tax rate 14.50% 18.60%
Debt/Equity ratio 0.03 0.03
Cost of debt 7.50% 7.50%
After-tax WACC 9.1% 11.0%
Selected WACC 10.0%

508969.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 508969.BO:

cost_of_equity (10.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.28) + 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.