ACCURACY.NS WACC - Weighted Average Cost of Capital

The WACC of Accuracy Shipping Ltd (ACCURACY.NS) is 13.2%.

The Cost of Equity of Accuracy Shipping Ltd (ACCURACY.NS) is 19.85%.

The Cost of Debt of Accuracy Shipping Ltd (ACCURACY.NS) is 9.65%.

	Range	Selected
Cost of equity	17.40% - 22.30%	19.85%
Tax rate	27.10% - 30.20%	28.65%
Cost of debt	8.80% - 10.50%	9.65%
WACC	11.8% - 14.7%	13.2%

WACC

ACCURACY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.27	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.40%	22.30%

Tax rate	27.10%	30.20%
Debt/Equity ratio	1.03	1.03
Cost of debt	8.80%	10.50%

After-tax WACC	11.8%	14.7%


Selected WACC	13.2%

ACCURACY.NS'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 ACCURACY.NS:

cost_of_equity (19.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.27) + 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.