533101.BO WACC - Weighted Average Cost of Capital

The WACC of Suryaamba Spinning Mills Ltd (533101.BO) is 13.2%.

The Cost of Equity of Suryaamba Spinning Mills Ltd (533101.BO) is 17.05%.

The Cost of Debt of Suryaamba Spinning Mills Ltd (533101.BO) is 11.85%.

	Range	Selected
Cost of equity	14.30% - 19.80%	17.05%
Tax rate	23.80% - 26.10%	24.95%
Cost of debt	11.60% - 12.10%	11.85%
WACC	11.8% - 14.7%	13.2%

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	0.9	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	19.80%

Tax rate	23.80%	26.10%
Debt/Equity ratio	0.89	0.89
Cost of debt	11.60%	12.10%

After-tax WACC	11.8%	14.7%


Selected WACC	13.2%

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 (17.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.