531223.BO
Anjani Synthetics Ltd
Price:  
33.31 
INR
Volume:  
31,832.00
India | Textiles, Apparel & Luxury Goods
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531223.BO WACC - Weighted Average Cost of Capital

The WACC of Anjani Synthetics Ltd (531223.BO) is 9.5%.

The Cost of Equity of Anjani Synthetics Ltd (531223.BO) is 10.95%.
The Cost of Debt of Anjani Synthetics Ltd (531223.BO) is 8.85%.

Range Selected
Cost of equity 9.80% - 12.10% 10.95%
Tax rate 21.80% - 25.10% 23.45%
Cost of debt 7.70% - 10.00% 8.85%
WACC 8.5% - 10.5% 9.5%
WACC

531223.BO 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 0.46
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 12.10%
Tax rate 21.80% 25.10%
Debt/Equity ratio 0.55 0.55
Cost of debt 7.70% 10.00%
After-tax WACC 8.5% 10.5%
Selected WACC 9.5%

531223.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 531223.BO:

cost_of_equity (10.95%) = 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.