SHIVAMAUTO.NS WACC - Weighted Average Cost of Capital

The WACC of Shivam Autotech Ltd (SHIVAMAUTO.NS) is 17.4%.

The Cost of Equity of Shivam Autotech Ltd (SHIVAMAUTO.NS) is 16.95%.

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

	Range	Selected
Cost of equity	15.50% - 18.40%	16.95%
Tax rate	5.50% - 6.70%	6.10%
Cost of debt	11.60% - 26.90%	19.25%
WACC	13.5% - 21.3%	17.4%

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	1.04	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	18.40%

Tax rate	5.50%	6.70%
Debt/Equity ratio	0.77	0.77
Cost of debt	11.60%	26.90%

After-tax WACC	13.5%	21.3%


Selected WACC	17.4%

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 (16.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.