SHMP
NaturalShrimp Inc
Price:  
0.00 
USD
Volume:  
735,850.00
United States | Food Products
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SHMP WACC - Weighted Average Cost of Capital

The WACC of NaturalShrimp Inc (SHMP) is 4.1%.

The Cost of Equity of NaturalShrimp Inc (SHMP) is 5.80%.
The Cost of Debt of NaturalShrimp Inc (SHMP) is 5.50%.

Range Selected
Cost of equity 2.70% - 8.90% 5.80%
Tax rate 26.20% - 27.00% 26.60%
Cost of debt 4.00% - 7.00% 5.50%
WACC 2.9% - 5.2% 4.1%
WACC

SHMP WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta -0.57 0.45
Additional risk adjustments 1.5% 2.0%
Cost of equity 2.70% 8.90%
Tax rate 26.20% 27.00%
Debt/Equity ratio 84.16 84.16
Cost of debt 4.00% 7.00%
After-tax WACC 2.9% 5.2%
Selected WACC 4.1%

SHMP'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 SHMP:

cost_of_equity (5.80%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (-0.57) + risk_adjustments (1.75%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.