513709.BO WACC - Weighted Average Cost of Capital

The WACC of Shilp Gravures Ltd (513709.BO) is 13.1%.

The Cost of Equity of Shilp Gravures Ltd (513709.BO) is 13.25%.

The Cost of Debt of Shilp Gravures Ltd (513709.BO) is 8.65%.

	Range	Selected
Cost of equity	11.40% - 15.10%	13.25%
Tax rate	22.40% - 24.60%	23.50%
Cost of debt	7.50% - 9.80%	8.65%
WACC	11.3% - 14.9%	13.1%

WACC

513709.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	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	15.10%

Tax rate	22.40%	24.60%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	9.80%

After-tax WACC	11.3%	14.9%


Selected WACC	13.1%

513709.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 513709.BO:

cost_of_equity (13.25%) = 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.