510245.BO WACC - Weighted Average Cost of Capital

The WACC of Swasti Vinayaka Synthetics Ltd (510245.BO) is 14.1%.

The Cost of Equity of Swasti Vinayaka Synthetics Ltd (510245.BO) is 13.70%.

The Cost of Debt of Swasti Vinayaka Synthetics Ltd (510245.BO) is 24.10%.

	Range	Selected
Cost of equity	11.30% - 16.10%	13.70%
Tax rate	24.30% - 24.80%	24.55%
Cost of debt	7.80% - 40.40%	24.10%
WACC	10.8% - 17.5%	14.1%

WACC

510245.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	16.10%

Tax rate	24.30%	24.80%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.80%	40.40%

After-tax WACC	10.8%	17.5%


Selected WACC	14.1%

510245.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 510245.BO:

cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.