512257.BO WACC - Weighted Average Cost of Capital

The WACC of Swasti Vinayaka Art and Heritage Corporation Ltd (512257.BO) is 12.0%.

The Cost of Equity of Swasti Vinayaka Art and Heritage Corporation Ltd (512257.BO) is 13.45%.

The Cost of Debt of Swasti Vinayaka Art and Heritage Corporation Ltd (512257.BO) is 11.60%.

	Range	Selected
Cost of equity	11.50% - 15.40%	13.45%
Tax rate	25.20% - 25.90%	25.55%
Cost of debt	10.50% - 12.70%	11.60%
WACC	10.4% - 13.6%	12.0%

WACC

512257.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.55	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	15.40%

Tax rate	25.20%	25.90%
Debt/Equity ratio	0.43	0.43
Cost of debt	10.50%	12.70%

After-tax WACC	10.4%	13.6%


Selected WACC	12.0%

512257.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 512257.BO:

cost_of_equity (13.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.