SICAL.NS WACC - Weighted Average Cost of Capital

The WACC of Sical Logistics Ltd (SICAL.NS) is 6.9%.

The Cost of Equity of Sical Logistics Ltd (SICAL.NS) is 57.55%.

The Cost of Debt of Sical Logistics Ltd (SICAL.NS) is 5.50%.

	Range	Selected
Cost of equity	19.80% - 95.30%	57.55%
Tax rate	1.50% - 8.30%	4.90%
Cost of debt	4.00% - 7.00%	5.50%
WACC	4.5% - 9.3%	6.9%

WACC

SICAL.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	1.42	8.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.80%	95.30%

Tax rate	1.50%	8.30%
Debt/Equity ratio	29.79	29.79
Cost of debt	4.00%	7.00%

After-tax WACC	4.5%	9.3%


Selected WACC	6.9%

SICAL.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 SICAL.NS:

cost_of_equity (57.55%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (1.42) + 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.