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 15.85%.

The Cost of Debt of Shalby Ltd (SHALBY.NS) is 8.50%.

	Range	Selected
Cost of equity	13.40% - 18.30%	15.85%
Tax rate	32.90% - 34.20%	33.55%
Cost of debt	7.00% - 10.00%	8.50%
WACC	11.8% - 16.1%	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	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	18.30%

Tax rate	32.90%	34.20%
Debt/Equity ratio	0.24	0.24
Cost of debt	7.00%	10.00%

After-tax WACC	11.8%	16.1%


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 (15.85%) = 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.