SANDHAR.NS WACC - Weighted Average Cost of Capital
The WACC of Sandhar Technologies Ltd (SANDHAR.NS) is 14.6%.
| Range | Selected | |
| Cost of equity | 15.6% - 19.0% | 17.3% |
| Tax rate | 26.7% - 26.8% | 26.75% |
| Cost of debt | 5.8% - 8.3% | 7.05% |
| WACC | 13.1% - 16.1% | 14.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.06 | 1.19 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.6% | 19.0% |
| Tax rate | 26.7% | 26.8% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 5.8% | 8.3% |
| After-tax WACC | 13.1% | 16.1% |
| Selected WACC | 14.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SANDHAR.NS | Sandhar Technologies Ltd | 0.29 | 1.36 | 1.13 |
| GABRIEL.NS | Gabriel India Ltd | 0.01 | 1.96 | 1.95 |
| JAYBARMARU.NS | Jay Bharat Maruti Ltd | 0.59 | 0.94 | 0.65 |
| JBMA.NS | JBM Auto Ltd | 0.13 | 1.7 | 1.55 |
| LUMAXIND.NS | Lumax Industries Ltd | 0.29 | 0.98 | 0.8 |
| MINDACORP.NS | Minda Corporation Ltd | 0.04 | 1.06 | 1.02 |
| RANEHOLDIN.NS | Rane Holdings Ltd | 0.41 | 1.22 | 0.94 |
| SHRIPISTON.NS | Shriram Pistons & Rings Ltd | 0.03 | 0.85 | 0.83 |
| SSWL.NS | Steel Strips Wheels Ltd | 0.29 | 0.85 | 0.7 |
| SUBROS.NS | Subros Ltd | 0 | 1.43 | 1.43 |
| Low | High | |
| Unlevered beta | 0.9 | 1.06 |
| Relevered beta | 1.09 | 1.28 |
| Adjusted relevered beta | 1.06 | 1.19 |
SANDHAR.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 SANDHAR.NS:
cost_of_equity (17.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.06) + 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.