AMBER.NS WACC - Weighted Average Cost of Capital

The WACC of Amber Enterprises India Ltd (AMBER.NS) is 15.4%.

The Cost of Equity of Amber Enterprises India Ltd (AMBER.NS) is 15.15%.

The Cost of Debt of Amber Enterprises India Ltd (AMBER.NS) is 27.40%.

	Range	Selected
Cost of equity	13.50% - 16.80%	15.15%
Tax rate	27.50% - 29.00%	28.25%
Cost of debt	10.00% - 44.80%	27.40%
WACC	13.3% - 17.4%	15.4%

WACC

AMBER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.8	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	16.80%

Tax rate	27.50%	29.00%
Debt/Equity ratio	0.04	0.04
Cost of debt	10.00%	44.80%

After-tax WACC	13.3%	17.4%


Selected WACC	15.4%

AMBER.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 AMBER.NS:

cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.