SAKUMA.NS WACC - Weighted Average Cost of Capital

The WACC of Sakuma Exports Ltd (SAKUMA.NS) is 11.2%.

The Cost of Equity of Sakuma Exports Ltd (SAKUMA.NS) is 10.70%.

The Cost of Debt of Sakuma Exports Ltd (SAKUMA.NS) is 16.95%.

	Range	Selected
Cost of equity	9.70% - 11.70%	10.70%
Tax rate	20.40% - 22.90%	21.65%
Cost of debt	7.90% - 26.00%	16.95%
WACC	9.1% - 13.2%	11.2%

WACC

SAKUMA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.35	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.70%	11.70%

Tax rate	20.40%	22.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	7.90%	26.00%

After-tax WACC	9.1%	13.2%


Selected WACC	11.2%

SAKUMA.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 SAKUMA.NS:

cost_of_equity (10.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.