530585.BO WACC - Weighted Average Cost of Capital

The WACC of Swastika Investmart Ltd (530585.BO) is 16.3%.

The Cost of Equity of Swastika Investmart Ltd (530585.BO) is 16.40%.

The Cost of Debt of Swastika Investmart Ltd (530585.BO) is 17.15%.

	Range	Selected
Cost of equity	14.60% - 18.20%	16.40%
Tax rate	25.20% - 25.90%	25.55%
Cost of debt	8.60% - 25.70%	17.15%
WACC	14.5% - 18.2%	16.3%

WACC

530585.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.94	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	18.20%

Tax rate	25.20%	25.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	8.60%	25.70%

After-tax WACC	14.5%	18.2%


Selected WACC	16.3%

530585.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 530585.BO:

cost_of_equity (16.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.