541701.BO WACC - Weighted Average Cost of Capital

The WACC of Supershakti Metaliks Ltd (541701.BO) is 12.1%.

The Cost of Equity of Supershakti Metaliks Ltd (541701.BO) is 12.35%.

The Cost of Debt of Supershakti Metaliks Ltd (541701.BO) is 11.75%.

	Range	Selected
Cost of equity	10.90% - 13.80%	12.35%
Tax rate	24.70% - 25.20%	24.95%
Cost of debt	7.80% - 15.70%	11.75%
WACC	10.6% - 13.6%	12.1%

WACC

541701.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.48	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	13.80%

Tax rate	24.70%	25.20%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.80%	15.70%

After-tax WACC	10.6%	13.6%


Selected WACC	12.1%

541701.BO'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 541701.BO:

cost_of_equity (12.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.