SUPRAJIT.NS
Suprajit Engineering Ltd
Price:  
461.80 
INR
Volume:  
84,316.00
India | Auto Components
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SUPRAJIT.NS WACC - Weighted Average Cost of Capital

The WACC of Suprajit Engineering Ltd (SUPRAJIT.NS) is 17.2%.

The Cost of Equity of Suprajit Engineering Ltd (SUPRAJIT.NS) is 18.70%.
The Cost of Debt of Suprajit Engineering Ltd (SUPRAJIT.NS) is 7.25%.

Range Selected
Cost of equity 16.80% - 20.60% 18.70%
Tax rate 26.60% - 28.30% 27.45%
Cost of debt 7.00% - 7.50% 7.25%
WACC 15.5% - 18.9% 17.2%
WACC

SUPRAJIT.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.2 1.36
Additional risk adjustments 0.0% 0.5%
Cost of equity 16.80% 20.60%
Tax rate 26.60% 28.30%
Debt/Equity ratio 0.13 0.13
Cost of debt 7.00% 7.50%
After-tax WACC 15.5% 18.9%
Selected WACC 17.2%

SUPRAJIT.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 SUPRAJIT.NS:

cost_of_equity (18.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.2) + 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.