ANFIF WACC - Weighted Average Cost of Capital

The WACC of Amira Nature Foods Ltd (ANFIF) is 8.5%.

The Cost of Equity of Amira Nature Foods Ltd (ANFIF) is 67,250.10%.

The Cost of Debt of Amira Nature Foods Ltd (ANFIF) is 9.35%.

	Range	Selected
Cost of equity	15,612.10% - 118,888.10%	67,250.10%
Tax rate	12.90% - 13.30%	13.10%
Cost of debt	7.00% - 11.70%	9.35%
WACC	6.2% - 10.9%	8.5%

WACC

ANFIF WACC calculation

Category	Low	High

Long-term bond rate	3.9%	4.4%
Equity market risk premium	4.6%	5.6%
Adjusted beta	3393.09	21229.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	15,612.10%	118,888.10%

Tax rate	12.90%	13.30%
Debt/Equity ratio	158022.25	158022.25
Cost of debt	7.00%	11.70%

After-tax WACC	6.2%	10.9%


Selected WACC	8.5%

ANFIF'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 ANFIF:

cost_of_equity (67,250.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (3393.09) + 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.