ASAHISONG.NS WACC - Weighted Average Cost of Capital

The WACC of Asahi Songwon Colors Lucky Laminates Ltd (ASAHISONG.NS) is 15.0%.

The Cost of Equity of Asahi Songwon Colors Lucky Laminates Ltd (ASAHISONG.NS) is 17.80%.

The Cost of Debt of Asahi Songwon Colors Lucky Laminates Ltd (ASAHISONG.NS) is 10.45%.

	Range	Selected
Cost of equity	15.50% - 20.10%	17.80%
Tax rate	9.30% - 18.30%	13.80%
Cost of debt	10.40% - 10.50%	10.45%
WACC	13.6% - 16.5%	15.0%

WACC

ASAHISONG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.04	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	20.10%

Tax rate	9.30%	18.30%
Debt/Equity ratio	0.46	0.46
Cost of debt	10.40%	10.50%

After-tax WACC	13.6%	16.5%


Selected WACC	15.0%

ASAHISONG.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 ASAHISONG.NS:

cost_of_equity (17.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.