530187.BO
Atharv Enterprises Ltd
Price:  
INR
Volume:  
147,534
India | Distributors

530187.BO WACC - Weighted Average Cost of Capital

The WACC of Atharv Enterprises Ltd (530187.BO) is 11.4%.

The Cost of Equity of Atharv Enterprises Ltd (530187.BO) is 11.65%.
The Cost of Debt of Atharv Enterprises Ltd (530187.BO) is 5%.

RangeSelected
Cost of equity10.5% - 12.8%11.65%
Tax rate25.9% - 26.0%25.95%
Cost of debt5.0% - 5.0%5%
WACC10.3% - 12.5%11.4%
WACC

530187.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.440.53
Additional risk adjustments0.0%0.5%
Cost of equity10.5%12.8%
Tax rate25.9%26.0%
Debt/Equity ratio
0.040.04
Cost of debt5.0%5.0%
After-tax WACC10.3%12.5%
Selected WACC11.4%

530187.BO'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 530187.BO:

cost_of_equity (11.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.