534618.BO WACC - Weighted Average Cost of Capital

The WACC of Sangam Renewables Ltd (534618.BO) is 13.8%.

The Cost of Equity of Sangam Renewables Ltd (534618.BO) is 13.85%.

The Cost of Debt of Sangam Renewables Ltd (534618.BO) is 9.60%.

	Range	Selected
Cost of equity	12.10% - 15.60%	13.85%
Tax rate	27.40% - 40.10%	33.75%
Cost of debt	7.50% - 11.70%	9.60%
WACC	12.1% - 15.6%	13.8%

WACC

534618.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.63	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	15.60%

Tax rate	27.40%	40.10%
Debt/Equity ratio	0	0
Cost of debt	7.50%	11.70%

After-tax WACC	12.1%	15.6%


Selected WACC	13.8%

534618.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 534618.BO:

cost_of_equity (13.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.