AMJLAND.NS WACC - Weighted Average Cost of Capital

The WACC of AMJ Land Holdings Ltd (AMJLAND.NS) is 10.8%.

The Cost of Equity of AMJ Land Holdings Ltd (AMJLAND.NS) is 10.95%.

The Cost of Debt of AMJ Land Holdings Ltd (AMJLAND.NS) is 5.90%.

	Range	Selected
Cost of equity	9.30% - 12.60%	10.95%
Tax rate	29.30% - 32.20%	30.75%
Cost of debt	4.00% - 7.80%	5.90%
WACC	9.2% - 12.4%	10.8%

WACC

AMJLAND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.3	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.30%	12.60%

Tax rate	29.30%	32.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	7.80%

After-tax WACC	9.2%	12.4%


Selected WACC	10.8%

AMJLAND.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 AMJLAND.NS:

cost_of_equity (10.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.3) + 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.