SALASAR.NS WACC - Weighted Average Cost of Capital

The WACC of Salasar Techno Engineering Ltd (SALASAR.NS) is 13.3%.

The Cost of Equity of Salasar Techno Engineering Ltd (SALASAR.NS) is 14.35%.

The Cost of Debt of Salasar Techno Engineering Ltd (SALASAR.NS) is 11.55%.

	Range	Selected
Cost of equity	10.80% - 17.90%	14.35%
Tax rate	25.50% - 25.90%	25.70%
Cost of debt	10.50% - 12.60%	11.55%
WACC	10.2% - 16.3%	13.3%

WACC

SALASAR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.47	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	17.90%

Tax rate	25.50%	25.90%
Debt/Equity ratio	0.23	0.23
Cost of debt	10.50%	12.60%

After-tax WACC	10.2%	16.3%


Selected WACC	13.3%

SALASAR.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 SALASAR.NS:

cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.