APOLSINHOT.NS
Apollo Sindoori Hotels Ltd
Price:  
1,411.20 
INR
Volume:  
1,085.00
India | Commercial Services & Supplies
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APOLSINHOT.NS WACC - Weighted Average Cost of Capital

The WACC of Apollo Sindoori Hotels Ltd (APOLSINHOT.NS) is 13.7%.

The Cost of Equity of Apollo Sindoori Hotels Ltd (APOLSINHOT.NS) is 15.15%.
The Cost of Debt of Apollo Sindoori Hotels Ltd (APOLSINHOT.NS) is 10.75%.

Range Selected
Cost of equity 13.00% - 17.30% 15.15%
Tax rate 25.70% - 33.70% 29.70%
Cost of debt 8.60% - 12.90% 10.75%
WACC 11.7% - 15.6% 13.7%
WACC

APOLSINHOT.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.73 1.01
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 17.30%
Tax rate 25.70% 33.70%
Debt/Equity ratio 0.23 0.23
Cost of debt 8.60% 12.90%
After-tax WACC 11.7% 15.6%
Selected WACC 13.7%

APOLSINHOT.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 APOLSINHOT.NS:

cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.73) + 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.