AGCNET.NS WACC - Weighted Average Cost of Capital

The WACC of AGC Networks Ltd (AGCNET.NS) is 15.3%.

The Cost of Equity of AGC Networks Ltd (AGCNET.NS) is 15.05%.

The Cost of Debt of AGC Networks Ltd (AGCNET.NS) is 20.05%.

	Range	Selected
Cost of equity	13.20% - 16.90%	15.05%
Tax rate	15.40% - 17.00%	16.20%
Cost of debt	19.50% - 20.60%	20.05%
WACC	13.6% - 17.0%	15.3%

WACC

AGCNET.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	0.82	1.06

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	16.90%

Tax rate	15.40%	17.00%
Debt/Equity ratio	0.12	0.12
Cost of debt	19.50%	20.60%

After-tax WACC	13.6%	17.0%


Selected WACC	15.3%

AGCNET.NS'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 AGCNET.NS:

cost_of_equity (15.05%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.82) + 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.