532102.BO
SBEC Sugar Ltd
Price:  
56.03 
INR
Volume:  
2,390.00
India | Food Products
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532102.BO WACC - Weighted Average Cost of Capital

The WACC of SBEC Sugar Ltd (532102.BO) is 16.3%.

The Cost of Equity of SBEC Sugar Ltd (532102.BO) is 16.85%.
The Cost of Debt of SBEC Sugar Ltd (532102.BO) is 18.90%.

Range Selected
Cost of equity 15.30% - 18.40% 16.85%
Tax rate 11.30% - 19.70% 15.50%
Cost of debt 13.90% - 23.90% 18.90%
WACC 13.7% - 18.8% 16.3%
WACC

532102.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.01 1.13
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.30% 18.40%
Tax rate 11.30% 19.70%
Debt/Equity ratio 1.08 1.08
Cost of debt 13.90% 23.90%
After-tax WACC 13.7% 18.8%
Selected WACC 16.3%

532102.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 532102.BO:

cost_of_equity (16.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.