SPTL.NS WACC - Weighted Average Cost of Capital

The WACC of Sintex Plastics Technology Ltd (SPTL.NS) is 7.4%.

The Cost of Equity of Sintex Plastics Technology Ltd (SPTL.NS) is 153.70%.

The Cost of Debt of Sintex Plastics Technology Ltd (SPTL.NS) is 4.25%.

	Range	Selected
Cost of equity	123.90% - 183.50%	153.70%
Tax rate	10.80% - 26.60%	18.70%
Cost of debt	4.00% - 4.50%	4.25%
WACC	6.7% - 8.0%	7.4%

WACC

SPTL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	14.09	18.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	123.90%	183.50%

Tax rate	10.80%	26.60%
Debt/Equity ratio	37.04	37.04
Cost of debt	4.00%	4.50%

After-tax WACC	6.7%	8.0%


Selected WACC	7.4%

SPTL.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 SPTL.NS:

cost_of_equity (153.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (14.09) + 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.