511076.BO WACC - Weighted Average Cost of Capital
The WACC of Sat Industries Ltd (511076.BO) is 13.3%.
| Range | Selected | |
| Cost of equity | 12.5% - 15.1% | 13.8% |
| Tax rate | 12.6% - 17.3% | 14.95% |
| Cost of debt | 9.1% - 16.9% | 13% |
| WACC | 11.8% - 14.9% | 13.3% |
| Category | Low | High |
| Long-term bond rate | 7.4% | 7.9% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.74 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.5% | 15.1% |
| Tax rate | 12.6% | 17.3% |
| Debt/Equity ratio | 0.19 | 0.19 |
| Cost of debt | 9.1% | 16.9% |
| After-tax WACC | 11.8% | 14.9% |
| Selected WACC | 13.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 511076.BO | Sat Industries Ltd | 0.19 | 0.67 | 0.58 |
| 500159.BO | Metroglobal Ltd | 0.05 | 0.77 | 0.74 |
| 511736.BO | Ushdev International Ltd | 71.81 | 0.79 | 0.01 |
| 526931.BO | Hariyana Ship Breakers Ltd | 0.2 | 1.49 | 1.26 |
| 539939.BO | Yash Chemex Ltd | 0.22 | 3.55 | 2.97 |
| 540923.BO | Ashoka Metcast Ltd | 0.37 | 0.48 | 0.36 |
| 541152.BO | Advitiya Trade India Ltd | 0.01 | 0.97 | 0.96 |
| 542012.BO | A-1 Acid Ltd | 0.03 | 0.59 | 0.58 |
| SIL.NS | Standard Industries Ltd | 0.1 | 1.46 | 1.35 |
| VINYLINDIA.NS | Vinyl Chemicals India Ltd | 0 | 1.55 | 1.54 |
| Low | High | |
| Unlevered beta | 0.67 | 1.08 |
| Relevered beta | 0.61 | 0.76 |
| Adjusted relevered beta | 0.74 | 0.84 |
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.