SANGHVIMOV.NS WACC - Weighted Average Cost of Capital

The WACC of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 13.8%.

The Cost of Equity of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 14.85%.

The Cost of Debt of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 8.15%.

	Range	Selected
Cost of equity	13.70% - 16.00%	14.85%
Tax rate	25.50% - 27.30%	26.40%
Cost of debt	7.50% - 8.80%	8.15%
WACC	12.8% - 14.9%	13.8%

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	0.82	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	16.00%

Tax rate	25.50%	27.30%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.50%	8.80%

After-tax WACC	12.8%	14.9%


Selected WACC	13.8%

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 (14.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.