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.