SANDHAR.NS WACC - Weighted Average Cost of Capital

The WACC of Sandhar Technologies Ltd (SANDHAR.NS) is 14.4%.

The Cost of Equity of Sandhar Technologies Ltd (SANDHAR.NS) is 17.40%.

The Cost of Debt of Sandhar Technologies Ltd (SANDHAR.NS) is 7.20%.

	Range	Selected
Cost of equity	16.10% - 18.70%	17.40%
Tax rate	26.30% - 26.60%	26.45%
Cost of debt	6.30% - 8.10%	7.20%
WACC	13.2% - 15.5%	14.4%

WACC

SANDHAR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.11	1.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.10%	18.70%

Tax rate	26.30%	26.60%
Debt/Equity ratio	0.33	0.33
Cost of debt	6.30%	8.10%

After-tax WACC	13.2%	15.5%


Selected WACC	14.4%

SANDHAR.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 SANDHAR.NS:

cost_of_equity (17.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.11) + 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.