530883.BO
Super Crop Safe Ltd
Price:  
13.58 
INR
Volume:  
11,950
India | Chemicals

530883.BO WACC - Weighted Average Cost of Capital

The WACC of Super Crop Safe Ltd (530883.BO) is 12.3%.

The Cost of Equity of Super Crop Safe Ltd (530883.BO) is 14.75%.
The Cost of Debt of Super Crop Safe Ltd (530883.BO) is 9.75%.

RangeSelected
Cost of equity11.1% - 18.4%14.75%
Tax rate3.8% - 4.7%4.25%
Cost of debt9.0% - 10.5%9.75%
WACC10.0% - 14.6%12.3%
WACC

530883.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.511.13
Additional risk adjustments0.0%0.5%
Cost of equity11.1%18.4%
Tax rate3.8%4.7%
Debt/Equity ratio
0.810.81
Cost of debt9.0%10.5%
After-tax WACC10.0%14.6%
Selected WACC12.3%

530883.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 530883.BO:

cost_of_equity (14.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.