523606.BO WACC - Weighted Average Cost of Capital
The WACC of Sika Interplant Systems Ltd (523606.BO) is 12.8%.
| Range | Selected | |
| Cost of equity | 16.5% - 23.3% | 19.9% |
| Tax rate | 24.3% - 25.1% | 24.7% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 11.1% - 14.4% | 12.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.16 | 1.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.5% | 23.3% |
| Tax rate | 24.3% | 25.1% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 11.1% | 14.4% |
| Selected WACC | 12.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 523606.BO | Sika Interplant Systems Ltd | 1.12 | 0.83 | 0.45 |
| 215090.KQ | Ehwa Defense Technology | 0.01 | -0.03 | -0.03 |
| 274090.KQ | Kencoa Aerospace Corp | 0.33 | 0.24 | 0.19 |
| 4572.TW | Drewloong Precision Inc | 0.1 | 0.27 | 0.25 |
| 504176.BO | High Energy Batteries (India) Ltd | 0.02 | 1.05 | 1.04 |
| 522229.BO | Taneja Aerospace and Aviation Ltd | 0 | 1.02 | 1.02 |
| APOLLO.NS | Apollo Micro Systems Ltd | 0.02 | 1.29 | 1.27 |
| BDL.NS | Bharat Dynamics Ltd | 0 | 1.29 | 1.29 |
| BEL.NS | Bharat Electronics Ltd | 0 | 1.69 | 1.69 |
| MAZDOCK.NS | Mazagon Dock Shipbuilders Ltd | 0 | 1.76 | 1.76 |
| OEC.AX | Orbital Corporation Ltd | 0.34 | -0.16 | -0.13 |
| Low | High | |
| Unlevered beta | 0.45 | 1.04 |
| Relevered beta | 1.24 | 1.99 |
| Adjusted relevered beta | 1.16 | 1.66 |
523606.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 523606.BO:
cost_of_equity (19.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.16) + 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.