APCL.NS WACC - Weighted Average Cost of Capital

The WACC of Anjani Portland Cement Ltd (APCL.NS) is 33.9%.

The Cost of Equity of Anjani Portland Cement Ltd (APCL.NS) is 16.45%.

The Cost of Debt of Anjani Portland Cement Ltd (APCL.NS) is 64.30%.

	Range	Selected
Cost of equity	14.40% - 18.50%	16.45%
Tax rate	19.70% - 24.60%	22.15%
Cost of debt	7.00% - 121.60%	64.30%
WACC	9.7% - 58.1%	33.9%

WACC

APCL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.91	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	18.50%

Tax rate	19.70%	24.60%
Debt/Equity ratio	1.18	1.18
Cost of debt	7.00%	121.60%

After-tax WACC	9.7%	58.1%


Selected WACC	33.9%

APCL.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 APCL.NS:

cost_of_equity (16.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.