526508.BO
Shahi Shipping Ltd
Price:  
17.60 
INR
Volume:  
5,130.00
India | Marine
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526508.BO WACC - Weighted Average Cost of Capital

The WACC of Shahi Shipping Ltd (526508.BO) is 10.3%.

The Cost of Equity of Shahi Shipping Ltd (526508.BO) is 11.40%.
The Cost of Debt of Shahi Shipping Ltd (526508.BO) is 6.95%.

Range Selected
Cost of equity 10.20% - 12.60% 11.40%
Tax rate 11.20% - 16.60% 13.90%
Cost of debt 6.90% - 7.00% 6.95%
WACC 9.4% - 11.3% 10.3%
WACC

526508.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.4 0.51
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.20% 12.60%
Tax rate 11.20% 16.60%
Debt/Equity ratio 0.24 0.24
Cost of debt 6.90% 7.00%
After-tax WACC 9.4% 11.3%
Selected WACC 10.3%

526508.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 526508.BO:

cost_of_equity (11.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.