SAMBHAAV.NS WACC - Weighted Average Cost of Capital

The WACC of Sambhaav Media Ltd (SAMBHAAV.NS) is 11.4%.

The Cost of Equity of Sambhaav Media Ltd (SAMBHAAV.NS) is 11.75%.

The Cost of Debt of Sambhaav Media Ltd (SAMBHAAV.NS) is 11.60%.

	Range	Selected
Cost of equity	10.20% - 13.30%	11.75%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	10.00% - 13.20%	11.60%
WACC	9.9% - 12.9%	11.4%

WACC

SAMBHAAV.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	13.30%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	10.00%	13.20%

After-tax WACC	9.9%	12.9%


Selected WACC	11.4%

SAMBHAAV.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 SAMBHAAV.NS:

cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.