HIMATSEIDE.NS WACC - Weighted Average Cost of Capital

The WACC of Himatsingka Seide Ltd (HIMATSEIDE.NS) is 14.4%.

The Cost of Equity of Himatsingka Seide Ltd (HIMATSEIDE.NS) is 20.35%.

The Cost of Debt of Himatsingka Seide Ltd (HIMATSEIDE.NS) is 14.65%.

	Range	Selected
Cost of equity	17.50% - 23.20%	20.35%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	10.70% - 18.60%	14.65%
WACC	11.5% - 17.2%	14.4%

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	1.27	1.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.50%	23.20%

Tax rate	30.00%	30.00%
Debt/Equity ratio	1.45	1.45
Cost of debt	10.70%	18.60%

After-tax WACC	11.5%	17.2%


Selected WACC	14.4%

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 (20.35%) = 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.