532879.BO
Sir Shadi Lal Enterprises Ltd
Price:  
269.95 
INR
Volume:  
473.00
India | Food Products
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532879.BO WACC - Weighted Average Cost of Capital

The WACC of Sir Shadi Lal Enterprises Ltd (532879.BO) is 9.6%.

The Cost of Equity of Sir Shadi Lal Enterprises Ltd (532879.BO) is 19.90%.
The Cost of Debt of Sir Shadi Lal Enterprises Ltd (532879.BO) is 7.85%.

Range Selected
Cost of equity 18.10% - 21.70% 19.90%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 7.00% - 8.70% 7.85%
WACC 8.7% - 10.6% 9.6%
WACC

532879.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.35 1.49
Additional risk adjustments 0.0% 0.5%
Cost of equity 18.10% 21.70%
Tax rate 30.00% 30.00%
Debt/Equity ratio 2.48 2.48
Cost of debt 7.00% 8.70%
After-tax WACC 8.7% 10.6%
Selected WACC 9.6%

532879.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 532879.BO:

cost_of_equity (19.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.35) + 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.