SHALBY.NS
Shalby Ltd
Price:  
187.71 
INR
Volume:  
51,067.00
India | Health Care Providers & Services
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SHALBY.NS WACC - Weighted Average Cost of Capital

The WACC of Shalby Ltd (SHALBY.NS) is 13.9%.

The Cost of Equity of Shalby Ltd (SHALBY.NS) is 15.60%.
The Cost of Debt of Shalby Ltd (SHALBY.NS) is 7.00%.

Range Selected
Cost of equity 13.40% - 17.80% 15.60%
Tax rate 32.90% - 34.20% 33.55%
Cost of debt 5.90% - 8.10% 7.00%
WACC 11.9% - 15.8% 13.9%
WACC

SHALBY.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.79 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.40% 17.80%
Tax rate 32.90% 34.20%
Debt/Equity ratio 0.19 0.19
Cost of debt 5.90% 8.10%
After-tax WACC 11.9% 15.8%
Selected WACC 13.9%

SHALBY.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 SHALBY.NS:

cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.