513097.BO WACC - Weighted Average Cost of Capital

The WACC of Shivalik Bimetal Controls Ltd (513097.BO) is 12.3%.

The Cost of Equity of Shivalik Bimetal Controls Ltd (513097.BO) is 12.55%.

The Cost of Debt of Shivalik Bimetal Controls Ltd (513097.BO) is 8.65%.

	Range	Selected
Cost of equity	10.90% - 14.20%	12.55%
Tax rate	27.90% - 33.10%	30.50%
Cost of debt	8.50% - 8.80%	8.65%
WACC	10.7% - 13.9%	12.3%

WACC

513097.BO WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.49	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	14.20%

Tax rate	27.90%	33.10%
Debt/Equity ratio	0.04	0.04
Cost of debt	8.50%	8.80%

After-tax WACC	10.7%	13.9%


Selected WACC	12.3%

513097.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 513097.BO:

cost_of_equity (12.55%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.49) + 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.