508996.BO
Satra Properties (India) Ltd
Price:  
0.87 
INR
Volume:  
75,825.00
India | Real Estate Management & Development
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508996.BO WACC - Weighted Average Cost of Capital

The WACC of Satra Properties (India) Ltd (508996.BO) is 9.6%.

The Cost of Equity of Satra Properties (India) Ltd (508996.BO) is 44.50%.
The Cost of Debt of Satra Properties (India) Ltd (508996.BO) is 5.00%.

Range Selected
Cost of equity 37.80% - 51.20% 44.50%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.6% - 10.6% 9.6%
WACC

508996.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 3.72 4.65
Additional risk adjustments 0.0% 0.5%
Cost of equity 37.80% 51.20%
Tax rate 30.00% 30.00%
Debt/Equity ratio 5.72 5.72
Cost of debt 5.00% 5.00%
After-tax WACC 8.6% 10.6%
Selected WACC 9.6%

508996.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 508996.BO:

cost_of_equity (44.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.72) + 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.