SHIVAMAUTO.NS
Shivam Autotech Ltd
Price:  
30.92 
INR
Volume:  
91,547
India | Auto Components

SHIVAMAUTO.NS WACC - Weighted Average Cost of Capital

The WACC of Shivam Autotech Ltd (SHIVAMAUTO.NS) is 17.5%.

The Cost of Equity of Shivam Autotech Ltd (SHIVAMAUTO.NS) is 17.15%.
The Cost of Debt of Shivam Autotech Ltd (SHIVAMAUTO.NS) is 19.25%.

RangeSelected
Cost of equity15.6% - 18.7%17.15%
Tax rate5.5% - 6.7%6.1%
Cost of debt11.6% - 26.9%19.25%
WACC13.3% - 21.7%17.5%
WACC

SHIVAMAUTO.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.051.16
Additional risk adjustments0.0%0.5%
Cost of equity15.6%18.7%
Tax rate5.5%6.7%
Debt/Equity ratio
0.910.91
Cost of debt11.6%26.9%
After-tax WACC13.3%21.7%
Selected WACC17.5%

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 (17.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.05) + 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.