531726.BO WACC - Weighted Average Cost of Capital

The WACC of Panchsheel Organics Ltd (531726.BO) is 14.1%.

The Cost of Equity of Panchsheel Organics Ltd (531726.BO) is 14.35%.

The Cost of Debt of Panchsheel Organics Ltd (531726.BO) is 7.70%.

	Range	Selected
Cost of equity	12.80% - 15.90%	14.35%
Tax rate	26.50% - 26.90%	26.70%
Cost of debt	7.50% - 7.90%	7.70%
WACC	12.6% - 15.7%	14.1%

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	0.71	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	15.90%

Tax rate	26.50%	26.90%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	7.90%

After-tax WACC	12.6%	15.7%


Selected WACC	14.1%

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 (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.71) + 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.