531223.BO WACC - Weighted Average Cost of Capital

The WACC of Anjani Synthetics Ltd (531223.BO) is 10.8%.

The Cost of Equity of Anjani Synthetics Ltd (531223.BO) is 14.50%.

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

	Range	Selected
Cost of equity	12.30% - 16.70%	14.50%
Tax rate	21.80% - 25.10%	23.45%
Cost of debt	7.70% - 10.00%	8.85%
WACC	9.3% - 12.3%	10.8%

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	0.66	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	16.70%

Tax rate	21.80%	25.10%
Debt/Equity ratio	0.91	0.91
Cost of debt	7.70%	10.00%

After-tax WACC	9.3%	12.3%


Selected WACC	10.8%

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 (14.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.