SITINET.NS
Siti Networks Ltd
Price:  
0.50 
INR
Volume:  
493,495.00
India | Media
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

SITINET.NS WACC - Weighted Average Cost of Capital

The WACC of Siti Networks Ltd (SITINET.NS) is 6.1%.

The Cost of Equity of Siti Networks Ltd (SITINET.NS) is 19.95%.
The Cost of Debt of Siti Networks Ltd (SITINET.NS) is 5.50%.

Range Selected
Cost of equity 12.80% - 27.10% 19.95%
Tax rate 0.80% - 1.70% 1.25%
Cost of debt 4.00% - 7.00% 5.50%
WACC 4.4% - 7.8% 6.1%
WACC

SITINET.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.72 2.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 27.10%
Tax rate 0.80% 1.70%
Debt/Equity ratio 20.27 20.27
Cost of debt 4.00% 7.00%
After-tax WACC 4.4% 7.8%
Selected WACC 6.1%

SITINET.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 SITINET.NS:

cost_of_equity (19.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.