ASTRAL.NS WACC - Weighted Average Cost of Capital

The WACC of Astral Poly Technik Ltd (ASTRAL.NS) is 14.9%.

The Cost of Equity of Astral Poly Technik Ltd (ASTRAL.NS) is 14.85%.

The Cost of Debt of Astral Poly Technik Ltd (ASTRAL.NS) is 15.05%.

	Range	Selected
Cost of equity	13.00% - 16.70%	14.85%
Tax rate	24.00% - 24.80%	24.40%
Cost of debt	7.50% - 22.60%	15.05%
WACC	13.0% - 16.7%	14.9%

WACC

ASTRAL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.74	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	16.70%

Tax rate	24.00%	24.80%
Debt/Equity ratio	0	0
Cost of debt	7.50%	22.60%

After-tax WACC	13.0%	16.7%


Selected WACC	14.9%

ASTRAL.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 ASTRAL.NS:

cost_of_equity (14.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.