The WACC of Suumaya Industries Ltd (SUULD.NS) is 7.2%.
Range | Selected | |
Cost of equity | 25.0% - 89.8% | 57.4% |
Tax rate | 14.3% - 16.7% | 15.5% |
Cost of debt | 5.0% - 5.0% | 5% |
WACC | 5.4% - 8.9% | 7.2% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 2.18 | 8.8 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 25.0% | 89.8% |
Tax rate | 14.3% | 16.7% |
Debt/Equity ratio | 16.98 | 16.98 |
Cost of debt | 5.0% | 5.0% |
After-tax WACC | 5.4% | 8.9% |
Selected WACC | 7.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
SUULD.NS | Suumaya Industries Ltd | 16.98 | 1.38 | 0.09 |
500414.BO | Timex Group India Ltd | 0.02 | 1.23 | 1.21 |
523676.BO | Golkunda Diamonds and Jewellery Ltd | 0.28 | 0.15 | 0.12 |
540936.BO | Gautam Gems Ltd | 0.2 | -0.93 | -0.8 |
541144.BO | Active Clothing Co Ltd | 0.58 | 0.33 | 0.22 |
CANTABIL.NS | Cantabil Retail India Ltd | 0.19 | 1.44 | 1.24 |
LOVABLE.NS | Lovable Lingerie Ltd | 0.07 | 1.28 | 1.21 |
PIONEEREMB.NS | Pioneer Embroideries Ltd | 0.84 | 1.11 | 0.65 |
VIPCLOTHNG.NS | VIP Clothing Ltd | 0.22 | 1.28 | 1.08 |
ZENITHEXPO.NS | Zenith Exports Ltd | 0.06 | -0.34 | -0.32 |
Low | High | |
Unlevered beta | 0.18 | 0.82 |
Relevered beta | 2.76 | 12.64 |
Adjusted relevered beta | 2.18 | 8.8 |
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 SUULD.NS:
cost_of_equity (57.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.18) + 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.