SIGIND.NS WACC - Weighted Average Cost of Capital

The WACC of Signet Industries Ltd (SIGIND.NS) is 13.7%.

The Cost of Equity of Signet Industries Ltd (SIGIND.NS) is 19.70%.

The Cost of Debt of Signet Industries Ltd (SIGIND.NS) is 15.95%.

	Range	Selected
Cost of equity	14.90% - 24.50%	19.70%
Tax rate	30.50% - 31.40%	30.95%
Cost of debt	15.40% - 16.50%	15.95%
WACC	12.0% - 15.3%	13.7%

WACC

SIGIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.97	1.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	24.50%

Tax rate	30.50%	31.40%
Debt/Equity ratio	2.28	2.28
Cost of debt	15.40%	16.50%

After-tax WACC	12.0%	15.3%


Selected WACC	13.7%

SIGIND.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 SIGIND.NS:

cost_of_equity (19.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.97) + 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.