ASIANTILES.NS WACC - Weighted Average Cost of Capital

The WACC of Asian Granito India Ltd (ASIANTILES.NS) is 15.6%.

The Cost of Equity of Asian Granito India Ltd (ASIANTILES.NS) is 17.25%.

The Cost of Debt of Asian Granito India Ltd (ASIANTILES.NS) is 13.00%.

	Range	Selected
Cost of equity	15.60% - 18.90%	17.25%
Tax rate	24.60% - 28.70%	26.65%
Cost of debt	10.60% - 15.40%	13.00%
WACC	14.0% - 17.3%	15.6%

WACC

ASIANTILES.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.05	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	18.90%

Tax rate	24.60%	28.70%
Debt/Equity ratio	0.26	0.26
Cost of debt	10.60%	15.40%

After-tax WACC	14.0%	17.3%


Selected WACC	15.6%

ASIANTILES.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 ASIANTILES.NS:

cost_of_equity (17.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.05) + 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.