ARCHIDPLY.NS WACC - Weighted Average Cost of Capital

The WACC of Archidply Industries Ltd (ARCHIDPLY.NS) is 12.8%.

The Cost of Equity of Archidply Industries Ltd (ARCHIDPLY.NS) is 16.40%.

The Cost of Debt of Archidply Industries Ltd (ARCHIDPLY.NS) is 13.95%.

	Range	Selected
Cost of equity	14.70% - 18.10%	16.40%
Tax rate	36.00% - 42.00%	39.00%
Cost of debt	9.30% - 18.60%	13.95%
WACC	10.8% - 14.8%	12.8%

WACC

ARCHIDPLY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.95	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.70%	18.10%

Tax rate	36.00%	42.00%
Debt/Equity ratio	0.82	0.82
Cost of debt	9.30%	18.60%

After-tax WACC	10.8%	14.8%


Selected WACC	12.8%

ARCHIDPLY.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 ARCHIDPLY.NS:

cost_of_equity (16.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.