533101.BO WACC - Weighted Average Cost of Capital

The WACC of Suryaamba Spinning Mills Ltd (533101.BO) is 13.9%.

The Cost of Equity of Suryaamba Spinning Mills Ltd (533101.BO) is 17.40%.

The Cost of Debt of Suryaamba Spinning Mills Ltd (533101.BO) is 13.60%.

	Range	Selected
Cost of equity	15.30% - 19.50%	17.40%
Tax rate	23.80% - 26.10%	24.95%
Cost of debt	11.80% - 15.40%	13.60%
WACC	12.2% - 15.6%	13.9%

WACC

533101.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	1.25

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.30%	19.50%

Tax rate	23.80%	26.10%
Debt/Equity ratio	0.94	0.94
Cost of debt	11.80%	15.40%

After-tax WACC	12.2%	15.6%


Selected WACC	13.9%

533101.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 533101.BO:

cost_of_equity (17.40%) = 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.