HIMATSEIDE.NS WACC - Weighted Average Cost of Capital

The WACC of Himatsingka Seide Ltd (HIMATSEIDE.NS) is 12.3%.

The Cost of Equity of Himatsingka Seide Ltd (HIMATSEIDE.NS) is 22.70%.

The Cost of Debt of Himatsingka Seide Ltd (HIMATSEIDE.NS) is 15.15%.

	Range	Selected
Cost of equity	18.10% - 27.30%	22.70%
Tax rate	32.10% - 39.40%	35.75%
Cost of debt	11.70% - 18.60%	15.15%
WACC	10.0% - 14.5%	12.3%

WACC

HIMATSEIDE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.35	2.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.10%	27.30%

Tax rate	32.10%	39.40%
Debt/Equity ratio	3.95	3.95
Cost of debt	11.70%	18.60%

After-tax WACC	10.0%	14.5%


Selected WACC	12.3%

HIMATSEIDE.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 HIMATSEIDE.NS:

cost_of_equity (22.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.35) + 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.