SASTASUNDR.NS WACC - Weighted Average Cost of Capital

The WACC of Sastasundar Ventures Ltd (SASTASUNDR.NS) is 11.1%.

The Cost of Equity of Sastasundar Ventures Ltd (SASTASUNDR.NS) is 11.15%.

The Cost of Debt of Sastasundar Ventures Ltd (SASTASUNDR.NS) is 6.60%.

	Range	Selected
Cost of equity	9.80% - 12.50%	11.15%
Tax rate	26.50% - 46.20%	36.35%
Cost of debt	6.20% - 7.00%	6.60%
WACC	9.8% - 12.5%	11.1%

WACC

SASTASUNDR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.36	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.50%

Tax rate	26.50%	46.20%
Debt/Equity ratio	0	0
Cost of debt	6.20%	7.00%

After-tax WACC	9.8%	12.5%


Selected WACC	11.1%

SASTASUNDR.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 SASTASUNDR.NS:

cost_of_equity (11.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.