ASAL.NS
Automotive Stampings and Assemblies Ltd
Price:  
506.45 
INR
Volume:  
75,465.00
India | Auto Components
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ASAL.NS WACC - Weighted Average Cost of Capital

The WACC of Automotive Stampings and Assemblies Ltd (ASAL.NS) is 15.5%.

The Cost of Equity of Automotive Stampings and Assemblies Ltd (ASAL.NS) is 16.45%.
The Cost of Debt of Automotive Stampings and Assemblies Ltd (ASAL.NS) is 9.15%.

Range Selected
Cost of equity 14.60% - 18.30% 16.45%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 9.10% - 9.20% 9.15%
WACC 13.8% - 17.2% 15.5%
WACC

ASAL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.94 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.60% 18.30%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.11 0.11
Cost of debt 9.10% 9.20%
After-tax WACC 13.8% 17.2%
Selected WACC 15.5%

ASAL.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 ASAL.NS:

cost_of_equity (16.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.