538351.BO
A F Enterprises Ltd
Price:  
2.35 
INR
Volume:  
106,755.00
India | Capital Markets
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

538351.BO WACC - Weighted Average Cost of Capital

The WACC of A F Enterprises Ltd (538351.BO) is 8.8%.

The Cost of Equity of A F Enterprises Ltd (538351.BO) is 13.35%.
The Cost of Debt of A F Enterprises Ltd (538351.BO) is 5.75%.

Range Selected
Cost of equity 11.40% - 15.30% 13.35%
Tax rate 33.80% - 45.30% 39.55%
Cost of debt 4.00% - 7.50% 5.75%
WACC 7.4% - 10.1% 8.8%
WACC

538351.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.54 0.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 15.30%
Tax rate 33.80% 45.30%
Debt/Equity ratio 0.85 0.85
Cost of debt 4.00% 7.50%
After-tax WACC 7.4% 10.1%
Selected WACC 8.8%

538351.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 538351.BO:

cost_of_equity (13.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.