ARIES.NS WACC - Weighted Average Cost of Capital

The WACC of Aries Agro Ltd (ARIES.NS) is 15.1%.

The Cost of Equity of Aries Agro Ltd (ARIES.NS) is 15.60%.

The Cost of Debt of Aries Agro Ltd (ARIES.NS) is 15.05%.

	Range	Selected
Cost of equity	14.00% - 17.20%	15.60%
Tax rate	33.20% - 35.60%	34.40%
Cost of debt	8.60% - 21.50%	15.05%
WACC	13.2% - 16.9%	15.1%

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	0.86	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.20%

Tax rate	33.20%	35.60%
Debt/Equity ratio	0.1	0.1
Cost of debt	8.60%	21.50%

After-tax WACC	13.2%	16.9%


Selected WACC	15.1%

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 (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.