SWELECTES.NS
Swelect Energy Systems Ltd
Price:  
585.05 
INR
Volume:  
2,600.00
India | Electrical Equipment
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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.