SELAN.NS WACC - Weighted Average Cost of Capital
The WACC of Selan Exploration Technology Ltd (SELAN.NS) is 13.3%.
| Range | Selected | |
| Cost of equity | 10.6% - 16.1% | 13.35% |
| Tax rate | 23.9% - 26.3% | 25.1% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 10.6% - 16.0% | 13.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.45 | 0.88 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.6% | 16.1% |
| Tax rate | 23.9% | 26.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 10.6% | 16.0% |
| Selected WACC | 13.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SELAN.NS | Selan Exploration Technology Ltd | 0.01 | 1.64 | 1.63 |
| 513536.BO | Gujarat Natural Resources Ltd | 0.02 | 0.23 | 0.23 |
| 594.SI | CWX Global Ltd | 0.02 | -1.48 | -1.46 |
| 5GI.SI | Interra Resources Ltd | 0.01 | 0.11 | 0.1 |
| AJQ.AX | Armour Energy Ltd | 3.44 | -1.75 | -0.49 |
| BAS.AX | Bass Oil Ltd | 0.01 | 1.01 | 1 |
| CUE.AX | Cue Energy Resources Ltd | 0 | 0.71 | 0.71 |
| HINDOILEXP.NS | Hindustan Oil Exploration Company Ltd | 0.08 | 1.32 | 1.25 |
| OIL.NS | Oil India Ltd | 0.33 | 1.34 | 1.07 |
| WEL.AX | Winchester Energy Ltd | 0.09 | -1.66 | -1.55 |
| Low | High | |
| Unlevered beta | 0.18 | 0.82 |
| Relevered beta | 0.18 | 0.82 |
| Adjusted relevered beta | 0.45 | 0.88 |
SELAN.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 SELAN.NS:
cost_of_equity (13.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.