AKASH.NS WACC - Weighted Average Cost of Capital

The WACC of Akash Infra-Projects Ltd (AKASH.NS) is 13.1%.

The Cost of Equity of Akash Infra-Projects Ltd (AKASH.NS) is 13.60%.

The Cost of Debt of Akash Infra-Projects Ltd (AKASH.NS) is 15.50%.

	Range	Selected
Cost of equity	11.90% - 15.30%	13.60%
Tax rate	15.60% - 18.70%	17.15%
Cost of debt	12.40% - 18.60%	15.50%
WACC	10.9% - 15.2%	13.1%

WACC

AKASH.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.6	0.8

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.30%

Tax rate	15.60%	18.70%
Debt/Equity ratio	2.08	2.08
Cost of debt	12.40%	18.60%

After-tax WACC	10.9%	15.2%


Selected WACC	13.1%

AKASH.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 AKASH.NS:

cost_of_equity (13.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.