AMDIND.NS WACC - Weighted Average Cost of Capital

The WACC of AMD Industries Ltd (AMDIND.NS) is 16.4%.

The Cost of Equity of AMD Industries Ltd (AMDIND.NS) is 20.35%.

The Cost of Debt of AMD Industries Ltd (AMDIND.NS) is 14.65%.

	Range	Selected
Cost of equity	18.00% - 22.70%	20.35%
Tax rate	22.40% - 23.50%	22.95%
Cost of debt	10.70% - 18.60%	14.65%
WACC	13.7% - 19.0%	16.4%

WACC

AMDIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.34	1.6

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.00%	22.70%

Tax rate	22.40%	23.50%
Debt/Equity ratio	0.79	0.79
Cost of debt	10.70%	18.60%

After-tax WACC	13.7%	19.0%


Selected WACC	16.4%

AMDIND.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 AMDIND.NS:

cost_of_equity (20.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.34) + 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.