526365.BO
Swarnsarita Gems Ltd
Price:  
30.14 
INR
Volume:  
26,779
India | Textiles, Apparel & Luxury Goods

526365.BO WACC - Weighted Average Cost of Capital

The WACC of Swarnsarita Gems Ltd (526365.BO) is 10.8%.

The Cost of Equity of Swarnsarita Gems Ltd (526365.BO) is 17.3%.
The Cost of Debt of Swarnsarita Gems Ltd (526365.BO) is 8.45%.

RangeSelected
Cost of equity15.0% - 19.6%17.3%
Tax rate27.4% - 28.9%28.15%
Cost of debt6.4% - 10.5%8.45%
WACC9.0% - 12.6%10.8%
WACC

526365.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.981.27
Additional risk adjustments0.0%0.5%
Cost of equity15.0%19.6%
Tax rate27.4%28.9%
Debt/Equity ratio
1.371.37
Cost of debt6.4%10.5%
After-tax WACC9.0%12.6%
Selected WACC10.8%

526365.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 526365.BO:

cost_of_equity (17.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.