534612.BO
Advance Metering Technology Ltd
Price:  
27.17 
INR
Volume:  
5,022
India | Independent Power and Renewable Electricity Producers

534612.BO WACC - Weighted Average Cost of Capital

The WACC of Advance Metering Technology Ltd (534612.BO) is 11.6%.

The Cost of Equity of Advance Metering Technology Ltd (534612.BO) is 13.15%.
The Cost of Debt of Advance Metering Technology Ltd (534612.BO) is 7.2%.

RangeSelected
Cost of equity11.2% - 15.1%13.15%
Tax rate30.0% - 30.0%30%
Cost of debt7.0% - 7.4%7.2%
WACC10.0% - 13.2%11.6%
WACC

534612.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.530.78
Additional risk adjustments0.0%0.5%
Cost of equity11.2%15.1%
Tax rate30.0%30.0%
Debt/Equity ratio
0.250.25
Cost of debt7.0%7.4%
After-tax WACC10.0%13.2%
Selected WACC11.6%

534612.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 534612.BO:

cost_of_equity (13.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.