536737.BO WACC - Weighted Average Cost of Capital

The WACC of Amrapali Capital and Finance Services Ltd (536737.BO) is 12.7%.

The Cost of Equity of Amrapali Capital and Finance Services Ltd (536737.BO) is 14.25%.

The Cost of Debt of Amrapali Capital and Finance Services Ltd (536737.BO) is 11.85%.

	Range	Selected
Cost of equity	11.70% - 16.80%	14.25%
Tax rate	13.40% - 25.80%	19.60%
Cost of debt	10.50% - 13.20%	11.85%
WACC	10.8% - 14.5%	12.7%

WACC

536737.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.58	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.70%	16.80%

Tax rate	13.40%	25.80%
Debt/Equity ratio	0.48	0.48
Cost of debt	10.50%	13.20%

After-tax WACC	10.8%	14.5%


Selected WACC	12.7%

536737.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 536737.BO:

cost_of_equity (14.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.58) + 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.