SUDARSCHEM.NS
Sudarshan Chemical Industries Ltd
Price:  
1,036.20 
INR
Volume:  
88,866.00
India | Chemicals
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SUDARSCHEM.NS WACC - Weighted Average Cost of Capital

The WACC of Sudarshan Chemical Industries Ltd (SUDARSCHEM.NS) is 13.8%.

The Cost of Equity of Sudarshan Chemical Industries Ltd (SUDARSCHEM.NS) is 14.35%.
The Cost of Debt of Sudarshan Chemical Industries Ltd (SUDARSCHEM.NS) is 5.90%.

Range Selected
Cost of equity 12.70% - 16.00% 14.35%
Tax rate 24.10% - 24.50% 24.30%
Cost of debt 4.00% - 7.80% 5.90%
WACC 12.2% - 15.4% 13.8%
WACC

SUDARSCHEM.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.7 0.87
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.70% 16.00%
Tax rate 24.10% 24.50%
Debt/Equity ratio 0.06 0.06
Cost of debt 4.00% 7.80%
After-tax WACC 12.2% 15.4%
Selected WACC 13.8%

SUDARSCHEM.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 SUDARSCHEM.NS:

cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.