SKIPPER.NS WACC - Weighted Average Cost of Capital

The WACC of Skipper Ltd (SKIPPER.NS) is 16.9%.

The Cost of Equity of Skipper Ltd (SKIPPER.NS) is 17.25%.

The Cost of Debt of Skipper Ltd (SKIPPER.NS) is 19.10%.

	Range	Selected
Cost of equity	14.90% - 19.60%	17.25%
Tax rate	27.20% - 29.10%	28.15%
Cost of debt	12.10% - 26.10%	19.10%
WACC	14.2% - 19.5%	16.9%

WACC

SKIPPER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.96	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	19.60%

Tax rate	27.20%	29.10%
Debt/Equity ratio	0.12	0.12
Cost of debt	12.10%	26.10%

After-tax WACC	14.2%	19.5%


Selected WACC	16.9%

SKIPPER.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 SKIPPER.NS:

cost_of_equity (17.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.