ASIANTILES.NS WACC - Weighted Average Cost of Capital
The WACC of Asian Granito India Ltd (ASIANTILES.NS) is 15.7%.
| Range | Selected | |
| Cost of equity | 15.6% - 19.0% | 17.3% |
| Tax rate | 24.6% - 28.7% | 26.65% |
| Cost of debt | 10.6% - 15.4% | 13% |
| WACC | 14.0% - 17.3% | 15.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.05 | 1.2 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.6% | 19.0% |
| Tax rate | 24.6% | 28.7% |
| Debt/Equity ratio | 0.26 | 0.26 |
| Cost of debt | 10.6% | 15.4% |
| After-tax WACC | 14.0% | 17.3% |
| Selected WACC | 15.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASIANTILES.NS | Asian Granito India Ltd | 0.26 | 1.82 | 1.52 |
| APOLLOPIPE.NS | Apollo Pipes Ltd | 0.05 | 0.48 | 0.46 |
| EVERESTIND.NS | Everest Industries Ltd | 0.1 | 0.98 | 0.91 |
| GREENLAM.NS | Greenlam Industries Ltd | 0.17 | 1.37 | 1.22 |
| HSIL.NS | HSIL Ltd | 0.6 | 1.25 | 0.87 |
| NITCO.NS | Nitco Ltd | 0.09 | 1.46 | 1.37 |
| ORIENTBELL.NS | Orient Bell Ltd | 0.1 | 0.35 | 0.32 |
| PPL.NS | Prakash Pipes Ltd | 0.04 | 1.49 | 1.45 |
| RUSHIL.NS | Rushil Decor Ltd | 0.33 | 1.24 | 0.99 |
| SOMANYCERA.NS | Somany Ceramics Ltd | 0.16 | 0.58 | 0.52 |
| Low | High | |
| Unlevered beta | 0.9 | 1.08 |
| Relevered beta | 1.07 | 1.3 |
| Adjusted relevered beta | 1.05 | 1.2 |
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 (17.30%) = 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.