SICAGEN.NS
Sicagen India Ltd
Price:  
24.6 
INR
Volume:  
52,030
India | Trading Companies & Distributors

SICAGEN.NS WACC - Weighted Average Cost of Capital

The WACC of Sicagen India Ltd (SICAGEN.NS) is 11.9%.

The Cost of Equity of Sicagen India Ltd (SICAGEN.NS) is 18.6%.
The Cost of Debt of Sicagen India Ltd (SICAGEN.NS) is 9.35%.

RangeSelected
Cost of equity16.8% - 20.4%18.6%
Tax rate30.0% - 30.0%30%
Cost of debt7.7% - 11.0%9.35%
WACC10.5% - 13.4%11.9%
WACC

SICAGEN.NS WACC calculation

CategoryLowHigh
Long-term bond rate7.2%7.7%
Equity market risk premium8.8%9.8%
Adjusted beta1.091.24
Additional risk adjustments0.0%0.5%
Cost of equity16.8%20.4%
Tax rate30.0%30.0%
Debt/Equity ratio
1.251.25
Cost of debt7.7%11.0%
After-tax WACC10.5%13.4%
Selected WACC11.9%

SICAGEN.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 SICAGEN.NS:

cost_of_equity (18.60%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (1.09) + 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.