AHLWEST.NS WACC - Weighted Average Cost of Capital
The WACC of Asian Hotels (West) Ltd (AHLWEST.NS) is 12.0%.
| Range | Selected | |
| Cost of equity | 38.8% - 52.9% | 45.85% |
| Tax rate | 10.9% - 46.0% | 28.45% |
| Cost of debt | 8.6% - 9.1% | 8.85% |
| WACC | 12.1% - 11.8% | 12.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 3.84 | 4.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 38.8% | 52.9% |
| Tax rate | 10.9% | 46.0% |
| Debt/Equity ratio | 5.96 | 5.96 |
| Cost of debt | 8.6% | 9.1% |
| After-tax WACC | 12.1% | 11.8% |
| Selected WACC | 12.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AHLWEST.NS | Asian Hotels (West) Ltd | 5.96 | 0 | 0 |
| 523710.BO | Sayaji Hotels Ltd | 0.29 | 0.54 | 0.44 |
| AHLEAST.NS | Asian Hotels East Ltd | 1.16 | 0.49 | 0.25 |
| ASIANHOTNR.NS | Asian Hotels (North) Ltd | 0.77 | 0.49 | 0.3 |
| BYKE.NS | Byke Hospitality Ltd | 0.22 | 1.4 | 1.19 |
| EIHAHOTELS.NS | EIH Associated Hotels Ltd | 0 | 0.87 | 0.87 |
| HLVLTD.NS | HLV Ltd | 0.05 | 1.14 | 1.1 |
| KAMATHOTEL.NS | Kamat Hotels (India) Ltd | 0.38 | 1.17 | 0.89 |
| ORIENTHOT.NS | Oriental Hotels Ltd | 0.06 | 2.02 | 1.92 |
| ROHLTD.NS | Royal Orchid Hotels Ltd | 0.18 | 1.4 | 1.22 |
| TAJGVK.NS | TAJ GVK Hotels and Resorts Ltd | 0.04 | 1.69 | 1.64 |
| Low | High | |
| Unlevered beta | 0.87 | 1.1 |
| Relevered beta | 5.24 | 6.73 |
| Adjusted relevered beta | 3.84 | 4.84 |
AHLWEST.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 AHLWEST.NS:
cost_of_equity (45.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.84) + 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.