SIGIND.NS WACC - Weighted Average Cost of Capital

The WACC of Signet Industries Ltd (SIGIND.NS) is 14.5%.

The Cost of Equity of Signet Industries Ltd (SIGIND.NS) is 21.80%.

The Cost of Debt of Signet Industries Ltd (SIGIND.NS) is 15.75%.

	Range	Selected
Cost of equity	19.30% - 24.30%	21.80%
Tax rate	29.70% - 30.50%	30.10%
Cost of debt	15.40% - 16.10%	15.75%
WACC	13.5% - 15.4%	14.5%

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	1.49	1.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	19.30%	24.30%

Tax rate	29.70%	30.50%
Debt/Equity ratio	2.11	2.11
Cost of debt	15.40%	16.10%

After-tax WACC	13.5%	15.4%


Selected WACC	14.5%

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 (21.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.49) + 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.