APLP.TA WACC - Weighted Average Cost of Capital

The WACC of Apollo Power Ltd (APLP.TA) is 8.9%.

The Cost of Equity of Apollo Power Ltd (APLP.TA) is 10.45%.

The Cost of Debt of Apollo Power Ltd (APLP.TA) is 7.30%.

	Range	Selected
Cost of equity	8.70% - 12.20%	10.45%
Tax rate	23.00% - 23.00%	23.00%
Cost of debt	7.00% - 7.60%	7.30%
WACC	7.6% - 10.2%	8.9%

WACC

APLP.TA WACC calculation

Category	Low	High

Long-term bond rate	4.8%	5.3%
Equity market risk premium	6.1%	7.1%
Adjusted beta	0.62	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	8.70%	12.20%

Tax rate	23.00%	23.00%
Debt/Equity ratio	0.46	0.46
Cost of debt	7.00%	7.60%

After-tax WACC	7.6%	10.2%


Selected WACC	8.9%

APLP.TA'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 APLP.TA:

cost_of_equity (10.45%) = risk_free_rate (5.05%) + equity_risk_premium (6.60%) * adjusted_beta (0.62) + 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.