SHREEPUSHK.NS WACC - Weighted Average Cost of Capital

The WACC of Shree Pushkar Chemicals & Fertilisers Ltd (SHREEPUSHK.NS) is 15.8%.

The Cost of Equity of Shree Pushkar Chemicals & Fertilisers Ltd (SHREEPUSHK.NS) is 17.40%.

The Cost of Debt of Shree Pushkar Chemicals & Fertilisers Ltd (SHREEPUSHK.NS) is 5.75%.

	Range	Selected
Cost of equity	15.60% - 19.20%	17.40%
Tax rate	21.10% - 22.20%	21.65%
Cost of debt	4.00% - 7.50%	5.75%
WACC	14.0% - 17.5%	15.8%

WACC

SHREEPUSHK.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.05	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	19.20%

Tax rate	21.10%	22.20%
Debt/Equity ratio	0.14	0.14
Cost of debt	4.00%	7.50%

After-tax WACC	14.0%	17.5%


Selected WACC	15.8%

SHREEPUSHK.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 SHREEPUSHK.NS:

cost_of_equity (17.40%) = 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.