AMBER.NS WACC - Weighted Average Cost of Capital

The WACC of Amber Enterprises India Ltd (AMBER.NS) is 14.1%.

The Cost of Equity of Amber Enterprises India Ltd (AMBER.NS) is 14.00%.

The Cost of Debt of Amber Enterprises India Ltd (AMBER.NS) is 20.30%.

	Range	Selected
Cost of equity	12.80% - 15.20%	14.00%
Tax rate	26.40% - 27.40%	26.90%
Cost of debt	10.00% - 30.60%	20.30%
WACC	12.6% - 15.5%	14.1%

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	0.72	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	15.20%

Tax rate	26.40%	27.40%
Debt/Equity ratio	0.05	0.05
Cost of debt	10.00%	30.60%

After-tax WACC	12.6%	15.5%


Selected WACC	14.1%

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 (14.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.