SEQUENT.NS WACC - Weighted Average Cost of Capital

The WACC of SeQuent Scientific Ltd (SEQUENT.NS) is 15.0%.

The Cost of Equity of SeQuent Scientific Ltd (SEQUENT.NS) is 15.80%.

The Cost of Debt of SeQuent Scientific Ltd (SEQUENT.NS) is 9.80%.

	Range	Selected
Cost of equity	14.70% - 16.90%	15.80%
Tax rate	20.30% - 25.00%	22.65%
Cost of debt	9.10% - 10.50%	9.80%
WACC	14.0% - 16.1%	15.0%

WACC

SEQUENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.94	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.70%	16.90%

Tax rate	20.30%	25.00%
Debt/Equity ratio	0.1	0.1
Cost of debt	9.10%	10.50%

After-tax WACC	14.0%	16.1%


Selected WACC	15.0%

SEQUENT.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 SEQUENT.NS:

cost_of_equity (15.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.