SUPREMEENG.NS WACC - Weighted Average Cost of Capital
The WACC of Supreme Engineering Ltd (SUPREMEENG.NS) is 7.5%.
| Range | Selected | |
| Cost of equity | 10.0% - 16.4% | 13.2% |
| Tax rate | 12.6% - 20.3% | 16.45% |
| Cost of debt | 4.5% - 7.0% | 5.75% |
| WACC | 5.9% - 9.0% | 7.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.38 | 0.91 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.0% | 16.4% |
| Tax rate | 12.6% | 20.3% |
| Debt/Equity ratio | 2.12 | 2.12 |
| Cost of debt | 4.5% | 7.0% |
| After-tax WACC | 5.9% | 9.0% |
| Selected WACC | 7.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SUPREMEENG.NS | Supreme Engineering Ltd | 2.12 | -0.37 | -0.13 |
| 504646.BO | Bhagwati Autocast Ltd | 0.11 | 0.05 | 0.04 |
| 513361.BO | India Steel Works Ltd | 0.44 | 1.15 | 0.85 |
| 513456.BO | Kanishk Steel Industries Ltd | 0.19 | -0.11 | -0.09 |
| 513532.BO | Pradeep Metals Ltd | 0.16 | 0.91 | 0.8 |
| 526981.BO | Shri Bajrang Alloys Ltd | 0.63 | 1.09 | 0.71 |
| 531638.BO | Suraj Ltd | 0.04 | 0.84 | 0.81 |
| 531810.BO | Metal Coatings (India) Ltd | 0.03 | 0.05 | 0.05 |
| GAL.NS | Gyscoal Alloys Ltd | 0.73 | -1.43 | -0.89 |
| METALFORGE.NS | Metalyst Forgings Ltd | 93.31 | -0.13 | 0 |
| Low | High | |
| Unlevered beta | 0.03 | 0.32 |
| Relevered beta | 0.07 | 0.87 |
| Adjusted relevered beta | 0.38 | 0.91 |
SUPREMEENG.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 SUPREMEENG.NS:
cost_of_equity (13.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.38) + 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.