SIMBHALS.NS WACC - Weighted Average Cost of Capital

The WACC of Simbhaoli Sugars Ltd (SIMBHALS.NS) is 13.1%.

The Cost of Equity of Simbhaoli Sugars Ltd (SIMBHALS.NS) is 83.50%.

The Cost of Debt of Simbhaoli Sugars Ltd (SIMBHALS.NS) is 8.50%.

	Range	Selected
Cost of equity	67.40% - 99.60%	83.50%
Tax rate	0.50% - 0.80%	0.65%
Cost of debt	7.90% - 9.10%	8.50%
WACC	11.6% - 14.7%	13.1%

WACC

SIMBHALS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	7.29	9.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	67.40%	99.60%

Tax rate	0.50%	0.80%
Debt/Equity ratio	14.95	14.95
Cost of debt	7.90%	9.10%

After-tax WACC	11.6%	14.7%


Selected WACC	13.1%

SIMBHALS.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 SIMBHALS.NS:

cost_of_equity (83.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (7.29) + 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.