AKSHOPTFBR.NS WACC - Weighted Average Cost of Capital

The WACC of Aksh Optifibre Ltd (AKSHOPTFBR.NS) is 11.1%.

The Cost of Equity of Aksh Optifibre Ltd (AKSHOPTFBR.NS) is 15.30%.

The Cost of Debt of Aksh Optifibre Ltd (AKSHOPTFBR.NS) is 6.80%.

	Range	Selected
Cost of equity	12.30% - 18.30%	15.30%
Tax rate	5.00% - 43.00%	24.00%
Cost of debt	6.60% - 7.00%	6.80%
WACC	9.8% - 12.4%	11.1%

WACC

AKSHOPTFBR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.65	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	18.30%

Tax rate	5.00%	43.00%
Debt/Equity ratio	0.7	0.7
Cost of debt	6.60%	7.00%

After-tax WACC	9.8%	12.4%


Selected WACC	11.1%

AKSHOPTFBR.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 AKSHOPTFBR.NS:

cost_of_equity (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.