SANDHAR.NS WACC - Weighted Average Cost of Capital

The WACC of Sandhar Technologies Ltd (SANDHAR.NS) is 14.6%.

The Cost of Equity of Sandhar Technologies Ltd (SANDHAR.NS) is 17.30%.

The Cost of Debt of Sandhar Technologies Ltd (SANDHAR.NS) is 7.05%.

	Range	Selected
Cost of equity	15.60% - 19.00%	17.30%
Tax rate	26.70% - 26.80%	26.75%
Cost of debt	5.80% - 8.30%	7.05%
WACC	13.1% - 16.1%	14.6%

WACC

SANDHAR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.06	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	19.00%

Tax rate	26.70%	26.80%
Debt/Equity ratio	0.29	0.29
Cost of debt	5.80%	8.30%

After-tax WACC	13.1%	16.1%


Selected WACC	14.6%

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.