514197.BO
S & T Corporation Ltd
Price:  
5.99 
INR
Volume:  
16,236.00
India | Food Products
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514197.BO WACC - Weighted Average Cost of Capital

The WACC of S & T Corporation Ltd (514197.BO) is 11.6%.

The Cost of Equity of S & T Corporation Ltd (514197.BO) is 14.30%.
The Cost of Debt of S & T Corporation Ltd (514197.BO) is 5.75%.

Range Selected
Cost of equity 13.20% - 15.40% 14.30%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 4.00% - 7.50% 5.75%
WACC 10.5% - 12.7% 11.6%
WACC

514197.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.77 0.81
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.20% 15.40%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.36 0.36
Cost of debt 4.00% 7.50%
After-tax WACC 10.5% 12.7%
Selected WACC 11.6%

514197.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 514197.BO:

cost_of_equity (14.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.