532841.BO WACC - Weighted Average Cost of Capital

The WACC of Sahyadri Industries Ltd (532841.BO) is 13.5%.

The Cost of Equity of Sahyadri Industries Ltd (532841.BO) is 14.90%.

The Cost of Debt of Sahyadri Industries Ltd (532841.BO) is 8.90%.

	Range	Selected
Cost of equity	13.10% - 16.70%	14.90%
Tax rate	24.80% - 27.80%	26.30%
Cost of debt	8.30% - 9.50%	8.90%
WACC	11.9% - 15.0%	13.5%

WACC

532841.BO WACC calculation

Category	Low	High

Long-term bond rate	7.4%	7.9%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.82	1.04

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	16.70%

Tax rate	24.80%	27.80%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.30%	9.50%

After-tax WACC	11.9%	15.0%


Selected WACC	13.5%

532841.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 532841.BO:

cost_of_equity (14.90%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.82) + 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.