SDBL.NS WACC - Weighted Average Cost of Capital
The WACC of SOM Distilleries and Breweries Ltd (SDBL.NS) is 14.1%.
| Range | Selected | |
| Cost of equity | 13.1% - 16.3% | 14.7% |
| Tax rate | 18.7% - 24.2% | 21.45% |
| Cost of debt | 7.1% - 7.5% | 7.3% |
| WACC | 12.6% - 15.5% | 14.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.75 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.1% | 16.3% |
| Tax rate | 18.7% | 24.2% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 7.1% | 7.5% |
| After-tax WACC | 12.6% | 15.5% |
| Selected WACC | 14.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SDBL.NS | SOM Distilleries and Breweries Ltd | 0.08 | 1.35 | 1.27 |
| 000752.SZ | Tibet Development Co Ltd | 0.13 | 0.33 | 0.3 |
| 000890.KS | Bohae Brewery Co Ltd | 0.49 | 1.16 | 0.84 |
| 000929.SZ | Lanzhou Huanghe Enterprise Co Ltd | 0.01 | 1.32 | 1.31 |
| 236.HK | San Miguel Brewery Hong Kong Ltd | 0.02 | 0.41 | 0.4 |
| 507155.BO | Jagatjit Industries Ltd | 0.33 | 0.87 | 0.69 |
| 526471.BO | Winsome Breweries Ltd | 0.1 | 1.09 | 1.01 |
| GDA.AX | Good Drinks Australia Ltd | 1.02 | -0.98 | -0.55 |
| SMB.VN | Sai Gon Mien Trung Beer JSC | 0.11 | 0.48 | 0.44 |
| UBL.NS | United Breweries Ltd | 0 | 0.79 | 0.79 |
| Low | High | |
| Unlevered beta | 0.59 | 0.81 |
| Relevered beta | 0.63 | 0.87 |
| Adjusted relevered beta | 0.75 | 0.91 |
SDBL.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 SDBL.NS:
cost_of_equity (14.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.