513709.BO
Shilp Gravures Ltd
Price:  
237.5 
INR
Volume:  
793
India | Machinery

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 13.15%.
The Cost of Debt of Shilp Gravures Ltd (513709.BO) is 9.05%.

RangeSelected
Cost of equity11.5% - 14.8%13.15%
Tax rate19.7% - 22.0%20.85%
Cost of debt7.5% - 10.6%9.05%
WACC11.4% - 14.8%13.1%
WACC

513709.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.550.75
Additional risk adjustments0.0%0.5%
Cost of equity11.5%14.8%
Tax rate19.7%22.0%
Debt/Equity ratio
0.010.01
Cost of debt7.5%10.6%
After-tax WACC11.4%14.8%
Selected WACC13.1%

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 (13.15%) = 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.