SHIVAMAUTO.NS WACC - Weighted Average Cost of Capital

The WACC of Shivam Autotech Ltd (SHIVAMAUTO.NS) is 13.6%.

The Cost of Equity of Shivam Autotech Ltd (SHIVAMAUTO.NS) is 21.15%.

The Cost of Debt of Shivam Autotech Ltd (SHIVAMAUTO.NS) is 9.30%.

	Range	Selected
Cost of equity	17.50% - 24.80%	21.15%
Tax rate	5.50% - 6.70%	6.10%
Cost of debt	7.00% - 11.60%	9.30%
WACC	10.9% - 16.2%	13.6%

WACC

SHIVAMAUTO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.28	1.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.50%	24.80%

Tax rate	5.50%	6.70%
Debt/Equity ratio	1.56	1.56
Cost of debt	7.00%	11.60%

After-tax WACC	10.9%	16.2%


Selected WACC	13.6%

SHIVAMAUTO.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 SHIVAMAUTO.NS:

cost_of_equity (21.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.28) + 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.