AHLADA.NS WACC - Weighted Average Cost of Capital

The WACC of Ahlada Engineers Ltd (AHLADA.NS) is 11.8%.

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

The Cost of Debt of Ahlada Engineers Ltd (AHLADA.NS) is 9.95%.

	Range	Selected
Cost of equity	11.90% - 16.50%	14.20%
Tax rate	30.80% - 32.20%	31.50%
Cost of debt	8.60% - 11.30%	9.95%
WACC	9.9% - 13.6%	11.8%

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	0.61	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	16.50%

Tax rate	30.80%	32.20%
Debt/Equity ratio	0.49	0.49
Cost of debt	8.60%	11.30%

After-tax WACC	9.9%	13.6%


Selected WACC	11.8%

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 (0.61) + 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.