540728.BO WACC - Weighted Average Cost of Capital
The WACC of Sayaji Industries Ltd (540728.BO) is 11.2%.
| Range | Selected | |
| Cost of equity | 14.2% - 17.0% | 15.6% |
| Tax rate | 37.3% - 39.7% | 38.5% |
| Cost of debt | 7.0% - 9.5% | 8.25% |
| WACC | 10.1% - 12.3% | 11.2% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.88 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.2% | 17.0% |
| Tax rate | 37.3% | 39.7% |
| Debt/Equity ratio | 0.71 | 0.71 |
| Cost of debt | 7.0% | 9.5% |
| After-tax WACC | 10.1% | 12.3% |
| Selected WACC | 11.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 540728.BO | Sayaji Industries Ltd | 0.71 | 0.74 | 0.51 |
| 500319.BO | Indian Sucrose Ltd | 1.08 | 0.99 | 0.59 |
| 507180.BO | Kesar Enterprises Ltd | 0.11 | 0.59 | 0.55 |
| 507621.BO | Milk Food Ltd | 0.58 | 1.06 | 0.78 |
| 519216.BO | Ajanta Soya Ltd | 0 | 0.85 | 0.85 |
| 532102.BO | SBEC Sugar Ltd | 1.08 | 0.14 | 0.08 |
| 532879.BO | Sir Shadi Lal Enterprises Ltd | 2.48 | 0.48 | 0.19 |
| 533210.BO | Kriti Nutrients Ltd | 0.13 | 0.72 | 0.66 |
| JAYSREETEA.NS | Jay Shree Tea and Industries Ltd | 1 | 1.09 | 0.68 |
| KMSUGAR.NS | K M Sugar Mills Ltd | 1.1 | 1.5 | 0.89 |
| Low | High | |
| Unlevered beta | 0.58 | 0.67 |
| Relevered beta | 0.82 | 0.99 |
| Adjusted relevered beta | 0.88 | 0.99 |
540728.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 540728.BO:
cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.88) + 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.