ARIHANTSUP.NS WACC - Weighted Average Cost of Capital
The WACC of Arihant Superstructures Ltd (ARIHANTSUP.NS) is 12.5%.
| Range | Selected | |
| Cost of equity | 10.4% - 16.5% | 13.45% |
| Tax rate | 17.9% - 18.9% | 18.4% |
| Cost of debt | 10.5% - 12.5% | 11.5% |
| WACC | 10.0% - 15.1% | 12.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.42 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 16.5% |
| Tax rate | 17.9% | 18.9% |
| Debt/Equity ratio | 0.29 | 0.29 |
| Cost of debt | 10.5% | 12.5% |
| After-tax WACC | 10.0% | 15.1% |
| Selected WACC | 12.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ARIHANTSUP.NS | Arihant Superstructures Ltd | 0.29 | 1.66 | 1.34 |
| 533078.BO | Manjeera Constructions Ltd | 6.61 | -0.05 | -0.01 |
| 533202.BO | Nel Holdings South Ltd | 27 | 1.9 | 0.08 |
| 533285.BO | RDB Realty & Infrastructure Ltd | 0.09 | 0.32 | 0.3 |
| 534338.BO | Max Heights Infrastucture Ltd | 0.27 | 0.09 | 0.08 |
| ANSALHSG.NS | Ansal Housing Ltd | 14.36 | 1.65 | 0.13 |
| ARVSMART.NS | Arvind Smartspaces Ltd | 0.09 | 1.91 | 1.78 |
| GANESHHOUC.NS | Ganesh Housing Corp Ltd | 0 | 1.47 | 1.46 |
| HUBTOWN.NS | Hubtown Ltd | 0.31 | 1.85 | 1.48 |
| PODDARHOUS.NS | Poddar Housing and Development Ltd | 14.46 | -0.19 | -0.02 |
| Low | High | |
| Unlevered beta | 0.11 | 0.72 |
| Relevered beta | 0.13 | 0.88 |
| Adjusted relevered beta | 0.42 | 0.92 |
ARIHANTSUP.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 ARIHANTSUP.NS:
cost_of_equity (13.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.