INDSWFTLTD.NS WACC - Weighted Average Cost of Capital

The WACC of Ind Swift Ltd (INDSWFTLTD.NS) is 11.2%.

The Cost of Equity of Ind Swift Ltd (INDSWFTLTD.NS) is 61.40%.

The Cost of Debt of Ind Swift Ltd (INDSWFTLTD.NS) is 8.20%.

	Range	Selected
Cost of equity	54.50% - 68.30%	61.40%
Tax rate	1.60% - 6.60%	4.10%
Cost of debt	5.90% - 10.50%	8.20%
WACC	8.9% - 13.5%	11.2%

WACC

INDSWFTLTD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	5.73	6.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	54.50%	68.30%

Tax rate	1.60%	6.60%
Debt/Equity ratio	14.51	14.51
Cost of debt	5.90%	10.50%

After-tax WACC	8.9%	13.5%


Selected WACC	11.2%

INDSWFTLTD.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 INDSWFTLTD.NS:

cost_of_equity (61.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (5.73) + 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.