541967.BO
Sky Gold Ltd
Price:  
330.35 
INR
Volume:  
235,263
India | Textiles, Apparel & Luxury Goods

541967.BO WACC - Weighted Average Cost of Capital

The WACC of Sky Gold Ltd (541967.BO) is 11.7%.

The Cost of Equity of Sky Gold Ltd (541967.BO) is 13.1%.
The Cost of Debt of Sky Gold Ltd (541967.BO) is 10.45%.

RangeSelected
Cost of equity11.5% - 14.7%13.1%
Tax rate22.5% - 26.5%24.5%
Cost of debt10.2% - 10.7%10.45%
WACC10.6% - 12.8%11.7%
WACC

541967.BO WACC calculation

CategoryLowHigh
Long-term bond rate7.4%7.9%
Equity market risk premium6.9%7.9%
Adjusted beta0.590.79
Additional risk adjustments0.0%0.5%
Cost of equity11.5%14.7%
Tax rate22.5%26.5%
Debt/Equity ratio
0.380.38
Cost of debt10.2%10.7%
After-tax WACC10.6%12.8%
Selected WACC11.7%

541967.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 541967.BO:

cost_of_equity (13.10%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.59) + 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.