SINTEX.NS WACC - Weighted Average Cost of Capital
The WACC of Sintex Industries Ltd (SINTEX.NS) is 11.2%.
| Range | Selected | |
| Cost of equity | 236.3% - 369.7% | 303% |
| Tax rate | 3.9% - 12.4% | 8.15% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 8.6% - 13.9% | 11.2% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 27.61 | 38.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 236.3% | 369.7% |
| Tax rate | 3.9% | 12.4% |
| Debt/Equity ratio | 48.4 | 48.4 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 8.6% | 13.9% |
| Selected WACC | 11.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SINTEX.NS | Sintex Industries Ltd | 48.4 | 1.12 | 0.02 |
| BOMDYEING.NS | Bombay Dyeing and Mfg Co Ltd | 0 | 1.68 | 1.68 |
| CENTENKA.NS | Century Enka Ltd | 0.05 | 1.4 | 1.34 |
| GINNIFILA.NS | Ginni Filaments Ltd | 0.21 | 1.42 | 1.19 |
| ICIL.NS | Indo Count Industries Ltd | 0.17 | 1.12 | 0.96 |
| NAHARINDUS.NS | Nahar Industrial Enterprises Ltd | 1.11 | 1.27 | 0.62 |
| NDL.NS | Nandan Denim Ltd | 0.45 | 1.95 | 1.37 |
| NITINSPIN.NS | Nitin Spinners Ltd | 0.54 | 1.08 | 0.72 |
| SANGAMIND.NS | Sangam (India) Ltd | 0.51 | 1.95 | 1.32 |
| SIYSIL.NS | Siyaram Silk Mills Ltd | 0.08 | 0.81 | 0.75 |
| Low | High | |
| Unlevered beta | 0.88 | 1.24 |
| Relevered beta | 40.72 | 57.51 |
| Adjusted relevered beta | 27.61 | 38.86 |
SINTEX.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 SINTEX.NS:
cost_of_equity (303.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (27.61) + 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.