ASPINWALL.NS WACC - Weighted Average Cost of Capital

The WACC of Aspinwall & Co Ltd (ASPINWALL.NS) is 12.8%.

The Cost of Equity of Aspinwall & Co Ltd (ASPINWALL.NS) is 13.40%.

The Cost of Debt of Aspinwall & Co Ltd (ASPINWALL.NS) is 8.95%.

	Range	Selected
Cost of equity	12.20% - 14.60%	13.40%
Tax rate	19.30% - 24.00%	21.65%
Cost of debt	7.80% - 10.10%	8.95%
WACC	11.6% - 13.9%	12.8%

WACC

ASPINWALL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.64	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.20%	14.60%

Tax rate	19.30%	24.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.80%	10.10%

After-tax WACC	11.6%	13.9%


Selected WACC	12.8%

ASPINWALL.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 ASPINWALL.NS:

cost_of_equity (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.64) + 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.