SIMBHALS.NS WACC - Weighted Average Cost of Capital

The WACC of Simbhaoli Sugars Ltd (SIMBHALS.NS) is 10.6%.

The Cost of Equity of Simbhaoli Sugars Ltd (SIMBHALS.NS) is 52.10%.

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

	Range	Selected
Cost of equity	44.80% - 59.40%	52.10%
Tax rate	0.50% - 0.80%	0.65%
Cost of debt	7.90% - 9.10%	8.50%
WACC	9.7% - 11.5%	10.6%

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	4.57	5.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	44.80%	59.40%

Tax rate	0.50%	0.80%
Debt/Equity ratio	19.15	19.15
Cost of debt	7.90%	9.10%

After-tax WACC	9.7%	11.5%


Selected WACC	10.6%

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 (52.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (4.57) + 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.