531923.BO WACC - Weighted Average Cost of Capital

The WACC of Dhampure Speciality Sugars Ltd (531923.BO) is 10.7%.

The Cost of Equity of Dhampure Speciality Sugars Ltd (531923.BO) is 15.60%.

The Cost of Debt of Dhampure Speciality Sugars Ltd (531923.BO) is 7.50%.

	Range	Selected
Cost of equity	14.40% - 16.80%	15.60%
Tax rate	19.60% - 23.50%	21.55%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.2% - 11.3%	10.7%

WACC

531923.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.91	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	16.80%

Tax rate	19.60%	23.50%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	10.2%	11.3%


Selected WACC	10.7%

531923.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 531923.BO:

cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.