SDBL.NS
SOM Distilleries and Breweries Ltd
Price:  
134.28 
INR
Volume:  
1,394,514.00
India | Beverages
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SDBL.NS WACC - Weighted Average Cost of Capital

The WACC of SOM Distilleries and Breweries Ltd (SDBL.NS) is 14.1%.

The Cost of Equity of SOM Distilleries and Breweries Ltd (SDBL.NS) is 14.65%.
The Cost of Debt of SOM Distilleries and Breweries Ltd (SDBL.NS) is 7.30%.

Range Selected
Cost of equity 13.10% - 16.20% 14.65%
Tax rate 18.70% - 24.20% 21.45%
Cost of debt 7.10% - 7.50% 7.30%
WACC 12.6% - 15.5% 14.1%
WACC

SDBL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.75 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.10% 16.20%
Tax rate 18.70% 24.20%
Debt/Equity ratio 0.07 0.07
Cost of debt 7.10% 7.50%
After-tax WACC 12.6% 15.5%
Selected WACC 14.1%

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 (14.65%) = 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.