ANSALHSG.NS WACC - Weighted Average Cost of Capital

The WACC of Ansal Housing Ltd (ANSALHSG.NS) is 11.2%.

The Cost of Equity of Ansal Housing Ltd (ANSALHSG.NS) is 23.05%.

The Cost of Debt of Ansal Housing Ltd (ANSALHSG.NS) is 15.50%.

	Range	Selected
Cost of equity	16.50% - 29.60%	23.05%
Tax rate	32.20% - 33.50%	32.85%
Cost of debt	7.80% - 23.20%	15.50%
WACC	6.0% - 16.3%	11.2%

WACC

ANSALHSG.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	1.06	2.17

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.50%	29.60%

Tax rate	32.20%	33.50%
Debt/Equity ratio	14.36	14.36
Cost of debt	7.80%	23.20%

After-tax WACC	6.0%	16.3%


Selected WACC	11.2%

ANSALHSG.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 ANSALHSG.NS:

cost_of_equity (23.05%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (1.06) + 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.