SUMEETINDS.NS WACC - Weighted Average Cost of Capital

The WACC of Sumeet Industries Ltd (SUMEETINDS.NS) is 12.8%.

The Cost of Equity of Sumeet Industries Ltd (SUMEETINDS.NS) is 13.10%.

The Cost of Debt of Sumeet Industries Ltd (SUMEETINDS.NS) is 5.50%.

	Range	Selected
Cost of equity	11.60% - 14.60%	13.10%
Tax rate	7.60% - 21.20%	14.40%
Cost of debt	4.00% - 7.00%	5.50%
WACC	11.3% - 14.2%	12.8%

WACC

SUMEETINDS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.57	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	14.60%

Tax rate	7.60%	21.20%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	7.00%

After-tax WACC	11.3%	14.2%


Selected WACC	12.8%

SUMEETINDS.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 SUMEETINDS.NS:

cost_of_equity (13.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.