SGL.NS WACC - Weighted Average Cost of Capital

The WACC of STL Global Ltd (SGL.NS) is 13.8%.

The Cost of Equity of STL Global Ltd (SGL.NS) is 13.50%.

The Cost of Debt of STL Global Ltd (SGL.NS) is 15.45%.

	Range	Selected
Cost of equity	11.30% - 15.70%	13.50%
Tax rate	1.00% - 7.70%	4.35%
Cost of debt	4.00% - 26.90%	15.45%
WACC	9.0% - 18.6%	13.8%

WACC

SGL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	15.70%

Tax rate	1.00%	7.70%
Debt/Equity ratio	0.46	0.46
Cost of debt	4.00%	26.90%

After-tax WACC	9.0%	18.6%


Selected WACC	13.8%

SGL.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 SGL.NS:

cost_of_equity (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.