ASAHIINDIA.NS
Asahi India Glass Ltd
Price:  
815.20 
INR
Volume:  
441,758.00
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ASAHIINDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Asahi India Glass Ltd (ASAHIINDIA.NS) is 15.1%.

The Cost of Equity of Asahi India Glass Ltd (ASAHIINDIA.NS) is 16.10%.
The Cost of Debt of Asahi India Glass Ltd (ASAHIINDIA.NS) is 8.30%.

Range Selected
Cost of equity 14.60% - 17.60% 16.10%
Tax rate 31.10% - 34.10% 32.60%
Cost of debt 8.10% - 8.50% 8.30%
WACC 13.8% - 16.5% 15.1%
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 0.93 1.04
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.60% 17.60%
Tax rate 31.10% 34.10%
Debt/Equity ratio 0.1 0.1
Cost of debt 8.10% 8.50%
After-tax WACC 13.8% 16.5%
Selected WACC 15.1%

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 (16.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.