ASHAPURMIN.NS WACC - Weighted Average Cost of Capital

The WACC of Ashapura Minechem Ltd (ASHAPURMIN.NS) is 12.6%.

The Cost of Equity of Ashapura Minechem Ltd (ASHAPURMIN.NS) is 14.70%.

The Cost of Debt of Ashapura Minechem Ltd (ASHAPURMIN.NS) is 6.85%.

	Range	Selected
Cost of equity	10.50% - 18.90%	14.70%
Tax rate	12.50% - 16.60%	14.55%
Cost of debt	6.10% - 7.60%	6.85%
WACC	9.3% - 16.0%	12.6%

WACC

ASHAPURMIN.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	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	18.90%

Tax rate	12.50%	16.60%
Debt/Equity ratio	0.31	0.31
Cost of debt	6.10%	7.60%

After-tax WACC	9.3%	16.0%


Selected WACC	12.6%

ASHAPURMIN.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 ASHAPURMIN.NS:

cost_of_equity (14.70%) = 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.