516110.BO
Scandent Imaging Ltd
Price:  
4.38 
INR
Volume:  
57,374.00
India | Health Care Providers & Services
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516110.BO WACC - Weighted Average Cost of Capital

The WACC of Scandent Imaging Ltd (516110.BO) is 10.9%.

The Cost of Equity of Scandent Imaging Ltd (516110.BO) is 11.70%.
The Cost of Debt of Scandent Imaging Ltd (516110.BO) is 7.25%.

Range Selected
Cost of equity 9.80% - 13.60% 11.70%
Tax rate 27.30% - 28.40% 27.85%
Cost of debt 7.00% - 7.50% 7.25%
WACC 9.2% - 12.6% 10.9%
WACC

516110.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.35 0.62
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 13.60%
Tax rate 27.30% 28.40%
Debt/Equity ratio 0.14 0.14
Cost of debt 7.00% 7.50%
After-tax WACC 9.2% 12.6%
Selected WACC 10.9%

516110.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 516110.BO:

cost_of_equity (11.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.