ALANKIT.NS WACC - Weighted Average Cost of Capital

The WACC of Alankit Ltd (ALANKIT.NS) is 14.3%.

The Cost of Equity of Alankit Ltd (ALANKIT.NS) is 15.05%.

The Cost of Debt of Alankit Ltd (ALANKIT.NS) is 9.70%.

	Range	Selected
Cost of equity	11.60% - 18.50%	15.05%
Tax rate	21.80% - 26.40%	24.10%
Cost of debt	7.50% - 11.90%	9.70%
WACC	11.0% - 17.5%	14.3%

WACC

ALANKIT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.57	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	18.50%

Tax rate	21.80%	26.40%
Debt/Equity ratio	0.12	0.12
Cost of debt	7.50%	11.90%

After-tax WACC	11.0%	17.5%


Selected WACC	14.3%

ALANKIT.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 ALANKIT.NS:

cost_of_equity (15.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.