SANGHVIMOV.NS WACC - Weighted Average Cost of Capital

The WACC of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 11.2%.

The Cost of Equity of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 11.90%.

The Cost of Debt of Sanghvi Movers Ltd (SANGHVIMOV.NS) is 7.85%.

	Range	Selected
Cost of equity	9.90% - 13.90%	11.90%
Tax rate	25.50% - 26.40%	25.95%
Cost of debt	7.50% - 8.20%	7.85%
WACC	9.4% - 13.0%	11.2%

WACC

SANGHVIMOV.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.36	0.65

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	13.90%

Tax rate	25.50%	26.40%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.50%	8.20%

After-tax WACC	9.4%	13.0%


Selected WACC	11.2%

SANGHVIMOV.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 SANGHVIMOV.NS:

cost_of_equity (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.