ASTEC.NS WACC - Weighted Average Cost of Capital
The WACC of Astec Lifesciences Ltd (ASTEC.NS) is 13.0%.
| Range | Selected | |
| Cost of equity | 12.7% - 18.2% | 15.45% |
| Tax rate | 25.1% - 26.2% | 25.65% |
| Cost of debt | 6.6% - 7.0% | 6.8% |
| WACC | 10.9% - 15.2% | 13.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.7 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.7% | 18.2% |
| Tax rate | 25.1% | 26.2% |
| Debt/Equity ratio | 0.3 | 0.3 |
| Cost of debt | 6.6% | 7.0% |
| After-tax WACC | 10.9% | 15.2% |
| Selected WACC | 13.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ASTEC.NS | Astec Lifesciences Ltd | 0.3 | 1.26 | 1.03 |
| 531862.BO | Bharat Agri Fert & Realty Ltd | 0.33 | 0.14 | 0.11 |
| 542123.BO | Phosphate Company Ltd | 0.37 | -0.74 | -0.58 |
| ARIES.NS | Aries Agro Ltd | 0.11 | 1.88 | 1.74 |
| EXCELINDUS.NS | Excel Industries Ltd | 0 | 1.31 | 1.31 |
| KHAICHEM.NS | Khaitan Chemicals and Fertilizers Ltd | 0.32 | 1.72 | 1.39 |
| KRISHANA.NS | Krishana Phoschem Ltd | 0.14 | 0.75 | 0.68 |
| NACLIND.NS | NACL Industries Ltd | 0.2 | 1.02 | 0.89 |
| NAGAFERT.NS | Nagarjuna Fertilizers and Chemicals Ltd | 9.79 | 0.5 | 0.06 |
| VIKASPROP.NS | Vikas Proppant & Granite Ltd | 2.7 | 0.07 | 0.02 |
| Low | High | |
| Unlevered beta | 0.45 | 0.95 |
| Relevered beta | 0.55 | 1.16 |
| Adjusted relevered beta | 0.7 | 1.11 |
ASTEC.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 ASTEC.NS:
cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.