ARCHIES.NS WACC - Weighted Average Cost of Capital
The WACC of Archies Ltd (ARCHIES.NS) is 12.0%.
| Range | Selected | |
| Cost of equity | 11.0% - 14.9% | 12.95% |
| Tax rate | 38.7% - 43.2% | 40.95% |
| Cost of debt | 9.2% - 26.9% | 18.05% |
| WACC | 9.0% - 15.0% | 12.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.5 | 0.75 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.0% | 14.9% |
| Tax rate | 38.7% | 43.2% |
| Debt/Equity ratio | 0.59 | 0.59 |
| Cost of debt | 9.2% | 26.9% |
| After-tax WACC | 9.0% | 15.0% |
| Selected WACC | 12.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARCHIES.NS | Archies Ltd | 0.59 | 1.14 | 0.85 |
| 540956.BO | Bhatia Communications & Retail (India) Ltd | 0.03 | -0.02 | -0.02 |
| 543.SI | Noel Gifts International Ltd | 0.06 | -0.22 | -0.21 |
| 7523.T | Art Vivant Co Ltd | 1.26 | 0.4 | 0.23 |
| 8473.HK | MI Ming Mart Holdings Ltd | 0.07 | 0.15 | 0.14 |
| 9904.T | Verite Co Ltd | 0.15 | 0.16 | 0.14 |
| DSK.AX | Dusk Group Ltd | 0.73 | 0.3 | 0.21 |
| MPH.AX | Mediland Pharm Ltd | 0.19 | 0.92 | 0.82 |
| TBZ.NS | Tribhovandas Bhimji Zaveri Ltd | 0.64 | 1.86 | 1.35 |
| THANGAMAYL.NS | Thanga Mayil Jewellery Ltd | 0.09 | 0.91 | 0.86 |
| Low | High | |
| Unlevered beta | 0.18 | 0.47 |
| Relevered beta | 0.25 | 0.63 |
| Adjusted relevered beta | 0.5 | 0.75 |
ARCHIES.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 ARCHIES.NS:
cost_of_equity (12.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.