540821.BO WACC - Weighted Average Cost of Capital

The WACC of Sadhna Broadcast Ltd (540821.BO) is 11.0%.

The Cost of Equity of Sadhna Broadcast Ltd (540821.BO) is 11.55%.

The Cost of Debt of Sadhna Broadcast Ltd (540821.BO) is 7.50%.

	Range	Selected
Cost of equity	10.60% - 12.50%	11.55%
Tax rate	23.30% - 28.50%	25.90%
Cost of debt	7.50% - 7.50%	7.50%
WACC	10.2% - 11.9%	11.0%

WACC

540821.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	12.50%

Tax rate	23.30%	28.50%
Debt/Equity ratio	0.09	0.09
Cost of debt	7.50%	7.50%

After-tax WACC	10.2%	11.9%


Selected WACC	11.0%

540821.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 540821.BO:

cost_of_equity (11.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.