SILVERTUC.NS WACC - Weighted Average Cost of Capital

The WACC of Silver Touch Technologies Ltd (SILVERTUC.NS) is 11.4%.

The Cost of Equity of Silver Touch Technologies Ltd (SILVERTUC.NS) is 10.85%.

The Cost of Debt of Silver Touch Technologies Ltd (SILVERTUC.NS) is 82.05%.

	Range	Selected
Cost of equity	9.90% - 11.80%	10.85%
Tax rate	26.20% - 27.00%	26.60%
Cost of debt	7.50% - 156.60%	82.05%
WACC	9.9% - 13.0%	11.4%

WACC

SILVERTUC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.37	0.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	11.80%

Tax rate	26.20%	27.00%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	156.60%

After-tax WACC	9.9%	13.0%


Selected WACC	11.4%

SILVERTUC.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 SILVERTUC.NS:

cost_of_equity (10.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.37) + 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.