AJMERA.NS WACC - Weighted Average Cost of Capital
The WACC of Ajmera Realty & Infra India Ltd (AJMERA.NS) is 10.5%.
| Range | Selected | |
| Cost of equity | 10.4% - 12.7% | 11.55% |
| Tax rate | 24.7% - 25.0% | 24.85% |
| Cost of debt | 6.7% - 9.1% | 7.9% |
| WACC | 9.4% - 11.6% | 10.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.42 | 0.52 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 12.7% |
| Tax rate | 24.7% | 25.0% |
| Debt/Equity ratio | 0.23 | 0.23 |
| Cost of debt | 6.7% | 9.1% |
| After-tax WACC | 9.4% | 11.6% |
| Selected WACC | 10.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AJMERA.NS | Ajmera Realty & Infra India Ltd | 0.23 | 2.18 | 1.86 |
| 3469.T | Dualtap Co Ltd | 0.91 | 0.11 | 0.07 |
| 508996.BO | Satra Properties (India) Ltd | 5.72 | 0.76 | 0.14 |
| 526727.BO | Garnet Construction Ltd | 0.21 | -0.68 | -0.59 |
| 533078.BO | Manjeera Constructions Ltd | 6.61 | -0.05 | -0.01 |
| ANANTRAJ.NS | Anant Raj Ltd | 0.03 | 1.62 | 1.58 |
| BRIGADE.NS | Brigade Enterprises Ltd | 0.21 | 1.5 | 1.3 |
| DART.JK | Duta Anggada Realty Tbk PT | 7.8 | 0.62 | 0.09 |
| ECOFIRS.KL | EcoFirst Consolidated Bhd | 0.68 | 0.2 | 0.13 |
| IBREALEST.NS | Indiabulls Real Estate Ltd | 0.04 | 0.39 | 0.38 |
| SUNTECK.NS | Sunteck Realty Ltd | 0.06 | 1.37 | 1.31 |
| Low | High | |
| Unlevered beta | 0.13 | 0.38 |
| Relevered beta | 0.13 | 0.28 |
| Adjusted relevered beta | 0.42 | 0.52 |
AJMERA.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 AJMERA.NS:
cost_of_equity (11.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.