531726.BO WACC - Weighted Average Cost of Capital

The WACC of Panchsheel Organics Ltd (531726.BO) is 14.2%.

The Cost of Equity of Panchsheel Organics Ltd (531726.BO) is 14.55%.

The Cost of Debt of Panchsheel Organics Ltd (531726.BO) is 8.20%.

	Range	Selected
Cost of equity	12.90% - 16.20%	14.55%
Tax rate	27.00% - 27.40%	27.20%
Cost of debt	7.50% - 8.90%	8.20%
WACC	12.6% - 15.9%	14.2%

WACC

531726.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.72	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	16.20%

Tax rate	27.00%	27.40%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	8.90%

After-tax WACC	12.6%	15.9%


Selected WACC	14.2%

531726.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 531726.BO:

cost_of_equity (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.