511076.BO
Sat Industries Ltd
Price:  
110.75 
INR
Volume:  
81,673
India | Trading Companies & Distributors

511076.BO WACC - Weighted Average Cost of Capital

The WACC of Sat Industries Ltd (511076.BO) is 13.3%.

The Cost of Equity of Sat Industries Ltd (511076.BO) is 13.8%.
The Cost of Debt of Sat Industries Ltd (511076.BO) is 13%.

RangeSelected
Cost of equity12.5% - 15.1%13.8%
Tax rate12.6% - 17.3%14.95%
Cost of debt9.1% - 16.9%13%
WACC11.8% - 14.9%13.3%
WACC

511076.BO WACC calculation

CategoryLowHigh
Long-term bond rate7.4%7.9%
Equity market risk premium6.9%7.9%
Adjusted beta0.740.84
Additional risk adjustments0.0%0.5%
Cost of equity12.5%15.1%
Tax rate12.6%17.3%
Debt/Equity ratio
0.190.19
Cost of debt9.1%16.9%
After-tax WACC11.8%14.9%
Selected WACC13.3%

511076.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 511076.BO:

cost_of_equity (13.80%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.74) + 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.