SWELECTES.NS WACC - Weighted Average Cost of Capital
The WACC of Swelect Energy Systems Ltd (SWELECTES.NS) is 15.3%.
| Range | Selected | |
| Cost of equity | 13.9% - 21.4% | 17.65% |
| Tax rate | 7.4% - 9.7% | 8.55% |
| Cost of debt | 7.5% - 18.6% | 13.05% |
| WACC | 11.1% - 19.6% | 15.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.84 | 1.45 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.9% | 21.4% |
| Tax rate | 7.4% | 9.7% |
| Debt/Equity ratio | 0.67 | 0.67 |
| Cost of debt | 7.5% | 18.6% |
| After-tax WACC | 11.1% | 19.6% |
| Selected WACC | 15.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SWELECTES.NS | Swelect Energy Systems Ltd | 0.67 | 1.23 | 0.76 |
| 504093.BO | Panasonic Energy India Co Ltd | 0 | 1.09 | 1.09 |
| 517546.BO | Alfa Transformers Ltd | 0.13 | 0.05 | 0.05 |
| 542670.BO | Artemis Electricals Ltd | 0.02 | -0.47 | -0.46 |
| EASUNREYRL.NS | Easun Reyrolle Ltd | 47.91 | 0.86 | 0.02 |
| HIRECT.NS | Hind Rectifiers Ltd | 0.08 | 1.73 | 1.61 |
| INDOTECH.NS | Indo Tech Transformers Ltd | 0 | 1.74 | 1.74 |
| KECL.NS | Kirloskar Electric Company Ltd | 0.14 | 1.72 | 1.52 |
| UJAAS.NS | Ujaas Energy Ltd | 2.07 | 0 | 0 |
| VETO.NS | VETO Switch Gears And Cables Ltd | 0.11 | 1.11 | 1.01 |
| Low | High | |
| Unlevered beta | 0.48 | 1.04 |
| Relevered beta | 0.76 | 1.67 |
| Adjusted relevered beta | 0.84 | 1.45 |
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 (17.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.