SANDESH.NS WACC - Weighted Average Cost of Capital
The WACC of Sandesh Ltd (SANDESH.NS) is 11.8%.
| Range | Selected | |
| Cost of equity | 16.4% - 19.5% | 17.95% |
| Tax rate | 22.6% - 23.5% | 23.05% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 11.1% - 12.6% | 11.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.15 | 1.25 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.4% | 19.5% |
| Tax rate | 22.6% | 23.5% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 11.1% | 12.6% |
| Selected WACC | 11.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SANDESH.NS | Sandesh Ltd | 1.06 | 0.94 | 0.52 |
| 534623.BO | Jupiter Infomedia Ltd | 0 | 1.56 | 1.56 |
| CYBERMEDIA.NS | Cyber Media India Ltd | 0.88 | 1.24 | 0.74 |
| DBCORP.NS | DB Corp Ltd | 0.06 | 1.56 | 1.49 |
| HMVL.NS | Hindustan Media Ventures Ltd | 0.14 | 0.9 | 0.81 |
| HTMEDIA.NS | HT Media Ltd | 2.48 | 0.96 | 0.33 |
| JAGRAN.NS | Jagran Prakashan Ltd | 0.17 | 0.62 | 0.55 |
| MPSLTD.NS | MPS Ltd | 0.01 | 1.31 | 1.3 |
| NAVNETEDUL.NS | Navneet Education Ltd | 0.08 | 0.4 | 0.38 |
| SCHAND.NS | S Chand and Company Ltd | 0.18 | 0.86 | 0.75 |
| STAR.KL | Star Media Group Bhd | 0.03 | 0.64 | 0.62 |
| Low | High | |
| Unlevered beta | 0.62 | 0.75 |
| Relevered beta | 1.22 | 1.37 |
| Adjusted relevered beta | 1.15 | 1.25 |
SANDESH.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 SANDESH.NS:
cost_of_equity (17.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.15) + 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.