ANUP.NS WACC - Weighted Average Cost of Capital

The WACC of Anup Engineering Ltd (ANUP.NS) is 15.1%.

The Cost of Equity of Anup Engineering Ltd (ANUP.NS) is 15.15%.

The Cost of Debt of Anup Engineering Ltd (ANUP.NS) is 7.50%.

	Range	Selected
Cost of equity	13.50% - 16.80%	15.15%
Tax rate	18.90% - 25.10%	22.00%
Cost of debt	7.50% - 7.50%	7.50%
WACC	13.5% - 16.8%	15.1%

WACC

ANUP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.8	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	16.80%

Tax rate	18.90%	25.10%
Debt/Equity ratio	0	0
Cost of debt	7.50%	7.50%

After-tax WACC	13.5%	16.8%


Selected WACC	15.1%

ANUP.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 ANUP.NS:

cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.