SIGIND.NS WACC - Weighted Average Cost of Capital

The WACC of Signet Industries Ltd (SIGIND.NS) is 13.8%.

The Cost of Equity of Signet Industries Ltd (SIGIND.NS) is 19.40%.

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

	Range	Selected
Cost of equity	15.10% - 23.70%	19.40%
Tax rate	30.50% - 31.40%	30.95%
Cost of debt	15.40% - 16.50%	15.95%
WACC	12.1% - 15.4%	13.8%

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	0.99	1.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.10%	23.70%

Tax rate	30.50%	31.40%
Debt/Equity ratio	2.04	2.04
Cost of debt	15.40%	16.50%

After-tax WACC	12.1%	15.4%


Selected WACC	13.8%

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 (19.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.99) + 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.