SUULD.NS
Suumaya Industries Ltd
Price:  
2.59 
INR
Volume:  
6,134
India | Textiles, Apparel & Luxury Goods

SUULD.NS WACC - Weighted Average Cost of Capital

The WACC of Suumaya Industries Ltd (SUULD.NS) is 7.2%.

The Cost of Equity of Suumaya Industries Ltd (SUULD.NS) is 57.4%.
The Cost of Debt of Suumaya Industries Ltd (SUULD.NS) is 5%.

RangeSelected
Cost of equity25.0% - 89.8%57.4%
Tax rate14.3% - 16.7%15.5%
Cost of debt5.0% - 5.0%5%
WACC5.4% - 8.9%7.2%
WACC

SUULD.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta2.188.8
Additional risk adjustments0.0%0.5%
Cost of equity25.0%89.8%
Tax rate14.3%16.7%
Debt/Equity ratio
16.9816.98
Cost of debt5.0%5.0%
After-tax WACC5.4%8.9%
Selected WACC7.2%

SUULD.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 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.