ARIES.NS WACC - Weighted Average Cost of Capital

The WACC of Aries Agro Ltd (ARIES.NS) is 14.6%.

The Cost of Equity of Aries Agro Ltd (ARIES.NS) is 15.15%.

The Cost of Debt of Aries Agro Ltd (ARIES.NS) is 15.30%.

	Range	Selected
Cost of equity	13.90% - 16.40%	15.15%
Tax rate	33.20% - 35.60%	34.40%
Cost of debt	9.10% - 21.50%	15.30%
WACC	13.0% - 16.1%	14.6%

WACC

ARIES.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	16.40%

Tax rate	33.20%	35.60%
Debt/Equity ratio	0.12	0.12
Cost of debt	9.10%	21.50%

After-tax WACC	13.0%	16.1%


Selected WACC	14.6%

ARIES.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 ARIES.NS:

cost_of_equity (15.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.