ASAHIINDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Asahi India Glass Ltd (ASAHIINDIA.NS) is 14.7%.

The Cost of Equity of Asahi India Glass Ltd (ASAHIINDIA.NS) is 15.70%.

The Cost of Debt of Asahi India Glass Ltd (ASAHIINDIA.NS) is 8.30%.

	Range	Selected
Cost of equity	14.40% - 17.00%	15.70%
Tax rate	30.40% - 34.10%	32.25%
Cost of debt	8.10% - 8.50%	8.30%
WACC	13.6% - 15.9%	14.7%

WACC

ASAHIINDIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.91	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	17.00%

Tax rate	30.40%	34.10%
Debt/Equity ratio	0.11	0.11
Cost of debt	8.10%	8.50%

After-tax WACC	13.6%	15.9%


Selected WACC	14.7%

ASAHIINDIA.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 ASAHIINDIA.NS:

cost_of_equity (15.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.