SHREECEM.NS
Shree Cement Ltd
Price:  
29,335.00 
INR
Volume:  
21,183.00
India | Construction Materials
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SHREECEM.NS WACC - Weighted Average Cost of Capital

The WACC of Shree Cement Ltd (SHREECEM.NS) is 14.7%.

The Cost of Equity of Shree Cement Ltd (SHREECEM.NS) is 14.80%.
The Cost of Debt of Shree Cement Ltd (SHREECEM.NS) is 8.60%.

Range Selected
Cost of equity 13.30% - 16.30% 14.80%
Tax rate 19.10% - 19.60% 19.35%
Cost of debt 7.90% - 9.30% 8.60%
WACC 13.2% - 16.1% 14.7%
WACC

SHREECEM.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.78 0.9
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.30% 16.30%
Tax rate 19.10% 19.60%
Debt/Equity ratio 0.02 0.02
Cost of debt 7.90% 9.30%
After-tax WACC 13.2% 16.1%
Selected WACC 14.7%

SHREECEM.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 SHREECEM.NS:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.