APEX.NS WACC - Weighted Average Cost of Capital

The WACC of Apex Frozen Foods Ltd (APEX.NS) is 15.2%.

The Cost of Equity of Apex Frozen Foods Ltd (APEX.NS) is 15.90%.

The Cost of Debt of Apex Frozen Foods Ltd (APEX.NS) is 10.85%.

	Range	Selected
Cost of equity	13.80% - 18.00%	15.90%
Tax rate	26.90% - 27.80%	27.35%
Cost of debt	9.60% - 12.10%	10.85%
WACC	13.2% - 17.2%	15.2%

WACC

APEX.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	18.00%

Tax rate	26.90%	27.80%
Debt/Equity ratio	0.1	0.1
Cost of debt	9.60%	12.10%

After-tax WACC	13.2%	17.2%


Selected WACC	15.2%

APEX.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 APEX.NS:

cost_of_equity (15.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.