AHLADA.NS WACC - Weighted Average Cost of Capital

The WACC of Ahlada Engineers Ltd (AHLADA.NS) is 12.1%.

The Cost of Equity of Ahlada Engineers Ltd (AHLADA.NS) is 14.20%.

The Cost of Debt of Ahlada Engineers Ltd (AHLADA.NS) is 10.95%.

	Range	Selected
Cost of equity	12.30% - 16.10%	14.20%
Tax rate	32.40% - 34.00%	33.20%
Cost of debt	10.50% - 11.40%	10.95%
WACC	10.7% - 13.4%	12.1%

WACC

AHLADA.NS 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	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	16.10%

Tax rate	32.40%	34.00%
Debt/Equity ratio	0.45	0.45
Cost of debt	10.50%	11.40%

After-tax WACC	10.7%	13.4%


Selected WACC	12.1%

AHLADA.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 AHLADA.NS:

cost_of_equity (14.20%) = 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.