ACCURACY.NS WACC - Weighted Average Cost of Capital

The WACC of Accuracy Shipping Ltd (ACCURACY.NS) is 11.9%.

The Cost of Equity of Accuracy Shipping Ltd (ACCURACY.NS) is 21.85%.

The Cost of Debt of Accuracy Shipping Ltd (ACCURACY.NS) is 8.30%.

	Range	Selected
Cost of equity	18.80% - 24.90%	21.85%
Tax rate	30.70% - 31.80%	31.25%
Cost of debt	7.00% - 9.60%	8.30%
WACC	10.2% - 13.6%	11.9%

WACC

ACCURACY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.43	1.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.80%	24.90%

Tax rate	30.70%	31.80%
Debt/Equity ratio	1.6	1.6
Cost of debt	7.00%	9.60%

After-tax WACC	10.2%	13.6%


Selected WACC	11.9%

ACCURACY.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 ACCURACY.NS:

cost_of_equity (21.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.43) + 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.