SHIL.NS WACC - Weighted Average Cost of Capital

The WACC of Somany Home Innovation Ltd (SHIL.NS) is 352.8%.

The Cost of Equity of Somany Home Innovation Ltd (SHIL.NS) is 14.10%.

The Cost of Debt of Somany Home Innovation Ltd (SHIL.NS) is 3,592.30%.

	Range	Selected
Cost of equity	12.50% - 15.70%	14.10%
Tax rate	23.80% - 31.20%	27.50%
Cost of debt	10.30% - 7,174.30%	3,592.30%
WACC	11.8% - 693.8%	352.8%

WACC

SHIL.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.71	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	15.70%

Tax rate	23.80%	31.20%
Debt/Equity ratio	0.16	0.16
Cost of debt	10.30%	7,174.30%

After-tax WACC	11.8%	693.8%


Selected WACC	352.8%

SHIL.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 SHIL.NS:

cost_of_equity (14.10%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.71) + 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.