SAKUMA.NS WACC - Weighted Average Cost of Capital

The WACC of Sakuma Exports Ltd (SAKUMA.NS) is 13.5%.

The Cost of Equity of Sakuma Exports Ltd (SAKUMA.NS) is 13.55%.

The Cost of Debt of Sakuma Exports Ltd (SAKUMA.NS) is 17.05%.

	Range	Selected
Cost of equity	11.90% - 15.20%	13.55%
Tax rate	20.40% - 22.90%	21.65%
Cost of debt	8.10% - 26.00%	17.05%
WACC	10.9% - 16.1%	13.5%

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	0.61	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.20%

Tax rate	20.40%	22.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	8.10%	26.00%

After-tax WACC	10.9%	16.1%


Selected WACC	13.5%

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 (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.