ASCOM.NS WACC - Weighted Average Cost of Capital

The WACC of Ascom Leasing & Investments Ltd (ASCOM.NS) is 11.4%.

The Cost of Equity of Ascom Leasing & Investments Ltd (ASCOM.NS) is 11.35%.

The Cost of Debt of Ascom Leasing & Investments Ltd (ASCOM.NS) is 13.05%.

	Range	Selected
Cost of equity	10.40% - 12.30%	11.35%
Tax rate	25.00% - 25.10%	25.05%
Cost of debt	7.50% - 18.60%	13.05%
WACC	10.4% - 12.4%	11.4%

WACC

ASCOM.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.43	0.48

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	12.30%

Tax rate	25.00%	25.10%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	18.60%

After-tax WACC	10.4%	12.4%


Selected WACC	11.4%

ASCOM.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 ASCOM.NS:

cost_of_equity (11.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.