SANGHVIMOV.NS WACC - Weighted Average Cost of Capital

The WACC of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 13.3%.

The Cost of Equity of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 14.20%.

The Cost of Debt of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 7.80%.

	Range	Selected
Cost of equity	13.00% - 15.40%	14.20%
Tax rate	25.50% - 26.40%	25.95%
Cost of debt	7.50% - 8.10%	7.80%
WACC	12.2% - 14.4%	13.3%

WACC

SANGHVIMOV.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.74	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	15.40%

Tax rate	25.50%	26.40%
Debt/Equity ratio	0.12	0.12
Cost of debt	7.50%	8.10%

After-tax WACC	12.2%	14.4%


Selected WACC	13.3%

SANGHVIMOV.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 SANGHVIMOV.NS:

cost_of_equity (14.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.