ASHIANA.NS WACC - Weighted Average Cost of Capital

The WACC of Ashiana Housing Ltd (ASHIANA.NS) is 16.6%.

The Cost of Equity of Ashiana Housing Ltd (ASHIANA.NS) is 16.80%.

The Cost of Debt of Ashiana Housing Ltd (ASHIANA.NS) is 17.05%.

	Range	Selected
Cost of equity	14.90% - 18.70%	16.80%
Tax rate	23.00% - 34.70%	28.85%
Cost of debt	15.50% - 18.60%	17.05%
WACC	14.8% - 18.3%	16.6%

WACC

ASHIANA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.97	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	18.70%

Tax rate	23.00%	34.70%
Debt/Equity ratio	0.06	0.06
Cost of debt	15.50%	18.60%

After-tax WACC	14.8%	18.3%


Selected WACC	16.6%

ASHIANA.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 ASHIANA.NS:

cost_of_equity (16.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.97) + 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.