SHYAMCENT.NS WACC - Weighted Average Cost of Capital

The WACC of Shyam Century Ferrous Ltd (SHYAMCENT.NS) is 11.1%.

The Cost of Equity of Shyam Century Ferrous Ltd (SHYAMCENT.NS) is 11.20%.

The Cost of Debt of Shyam Century Ferrous Ltd (SHYAMCENT.NS) is 10.70%.

	Range	Selected
Cost of equity	9.80% - 12.60%	11.20%
Tax rate	26.60% - 34.30%	30.45%
Cost of debt	7.00% - 14.40%	10.70%
WACC	9.7% - 12.5%	11.1%

WACC

SHYAMCENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.36	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	12.60%

Tax rate	26.60%	34.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.00%	14.40%

After-tax WACC	9.7%	12.5%


Selected WACC	11.1%

SHYAMCENT.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 SHYAMCENT.NS:

cost_of_equity (11.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.