SANDESH.NS WACC - Weighted Average Cost of Capital

The WACC of Sandesh Ltd (SANDESH.NS) is 11.8%.

The Cost of Equity of Sandesh Ltd (SANDESH.NS) is 17.95%.

The Cost of Debt of Sandesh Ltd (SANDESH.NS) is 7.50%.

	Range	Selected
Cost of equity	16.40% - 19.50%	17.95%
Tax rate	22.60% - 23.50%	23.05%
Cost of debt	7.50% - 7.50%	7.50%
WACC	11.1% - 12.6%	11.8%

WACC

SANDESH.NS WACC calculation

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	16.40%	19.50%

Tax rate	22.60%	23.50%
Debt/Equity ratio	1	1
Cost of debt	7.50%	7.50%

After-tax WACC	11.1%	12.6%


Selected WACC	11.8%

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.