ALKALI.NS WACC - Weighted Average Cost of Capital

The WACC of Alkali Metals Ltd (ALKALI.NS) is 13.6%.

The Cost of Equity of Alkali Metals Ltd (ALKALI.NS) is 15.25%.

The Cost of Debt of Alkali Metals Ltd (ALKALI.NS) is 8.90%.

	Range	Selected
Cost of equity	13.70% - 16.80%	15.25%
Tax rate	27.60% - 29.00%	28.30%
Cost of debt	8.10% - 9.70%	8.90%
WACC	12.3% - 15.0%	13.6%

WACC

ALKALI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.82	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.70%	16.80%

Tax rate	27.60%	29.00%
Debt/Equity ratio	0.23	0.23
Cost of debt	8.10%	9.70%

After-tax WACC	12.3%	15.0%


Selected WACC	13.6%

ALKALI.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 ALKALI.NS:

cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.