APOLLO.NS WACC - Weighted Average Cost of Capital

The WACC of Apollo Micro Systems Ltd (APOLLO.NS) is 14.9%.

The Cost of Equity of Apollo Micro Systems Ltd (APOLLO.NS) is 15.05%.

The Cost of Debt of Apollo Micro Systems Ltd (APOLLO.NS) is 13.35%.

	Range	Selected
Cost of equity	12.70% - 17.40%	15.05%
Tax rate	30.70% - 33.20%	31.95%
Cost of debt	7.50% - 19.20%	13.35%
WACC	12.5% - 17.3%	14.9%

WACC

APOLLO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.7	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	17.40%

Tax rate	30.70%	33.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	19.20%

After-tax WACC	12.5%	17.3%


Selected WACC	14.9%

APOLLO.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 APOLLO.NS:

cost_of_equity (15.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.