SANGAMIND.NS WACC - Weighted Average Cost of Capital

The WACC of Sangam (India) Ltd (SANGAMIND.NS) is 14.6%.

The Cost of Equity of Sangam (India) Ltd (SANGAMIND.NS) is 18.15%.

The Cost of Debt of Sangam (India) Ltd (SANGAMIND.NS) is 10.15%.

	Range	Selected
Cost of equity	15.50% - 20.80%	18.15%
Tax rate	23.60% - 25.40%	24.50%
Cost of debt	8.20% - 12.10%	10.15%
WACC	12.4% - 16.8%	14.6%

WACC

SANGAMIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.04	1.39

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	20.80%

Tax rate	23.60%	25.40%
Debt/Equity ratio	0.51	0.51
Cost of debt	8.20%	12.10%

After-tax WACC	12.4%	16.8%


Selected WACC	14.6%

SANGAMIND.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 SANGAMIND.NS:

cost_of_equity (18.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.