SWELECTES.NS WACC - Weighted Average Cost of Capital

The WACC of Swelect Energy Systems Ltd (SWELECTES.NS) is 16.8%.

The Cost of Equity of Swelect Energy Systems Ltd (SWELECTES.NS) is 21.00%.

The Cost of Debt of Swelect Energy Systems Ltd (SWELECTES.NS) is 11.15%.

	Range	Selected
Cost of equity	18.80% - 23.20%	21.00%
Tax rate	7.40% - 9.70%	8.55%
Cost of debt	10.20% - 12.10%	11.15%
WACC	15.2% - 18.4%	16.8%

WACC

SWELECTES.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.44	1.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.80%	23.20%

Tax rate	7.40%	9.70%
Debt/Equity ratio	0.64	0.64
Cost of debt	10.20%	12.10%

After-tax WACC	15.2%	18.4%


Selected WACC	16.8%

SWELECTES.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 SWELECTES.NS:

cost_of_equity (21.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.44) + 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.