SHARDACROP.NS WACC - Weighted Average Cost of Capital

The WACC of Sharda Cropchem Ltd (SHARDACROP.NS) is 12.9%.

The Cost of Equity of Sharda Cropchem Ltd (SHARDACROP.NS) is 12.90%.

The Cost of Debt of Sharda Cropchem Ltd (SHARDACROP.NS) is 21.65%.

	Range	Selected
Cost of equity	10.20% - 15.60%	12.90%
Tax rate	23.10% - 25.20%	24.15%
Cost of debt	7.00% - 36.30%	21.65%
WACC	10.2% - 15.6%	12.9%

WACC

SHARDACROP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.41	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	15.60%

Tax rate	23.10%	25.20%
Debt/Equity ratio	0	0
Cost of debt	7.00%	36.30%

After-tax WACC	10.2%	15.6%


Selected WACC	12.9%

SHARDACROP.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 SHARDACROP.NS:

cost_of_equity (12.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.