540728.BO WACC - Weighted Average Cost of Capital

The WACC of Sayaji Industries Ltd (540728.BO) is 11.1%.

The Cost of Equity of Sayaji Industries Ltd (540728.BO) is 15.30%.

The Cost of Debt of Sayaji Industries Ltd (540728.BO) is 8.25%.

	Range	Selected
Cost of equity	14.00% - 16.60%	15.30%
Tax rate	37.30% - 39.70%	38.50%
Cost of debt	7.00% - 9.50%	8.25%
WACC	10.0% - 12.1%	11.1%

WACC

540728.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.86	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	16.60%

Tax rate	37.30%	39.70%
Debt/Equity ratio	0.7	0.7
Cost of debt	7.00%	9.50%

After-tax WACC	10.0%	12.1%


Selected WACC	11.1%

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 (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.