SEYAIND.NS WACC - Weighted Average Cost of Capital

The WACC of Seya Industries Ltd (SEYAIND.NS) is 7.3%.

The Cost of Equity of Seya Industries Ltd (SEYAIND.NS) is 43.05%.

The Cost of Debt of Seya Industries Ltd (SEYAIND.NS) is 5.50%.

	Range	Selected
Cost of equity	31.90% - 54.20%	43.05%
Tax rate	7.90% - 11.80%	9.85%
Cost of debt	4.00% - 7.00%	5.50%
WACC	5.4% - 9.1%	7.3%

WACC

SEYAIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	3.02	4.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	31.90%	54.20%

Tax rate	7.90%	11.80%
Debt/Equity ratio	15.22	15.22
Cost of debt	4.00%	7.00%

After-tax WACC	5.4%	9.1%


Selected WACC	7.3%

SEYAIND.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 SEYAIND.NS:

cost_of_equity (43.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.02) + 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.