ASTRAMICRO.NS WACC - Weighted Average Cost of Capital

The WACC of Astra Micro Wave Products Ltd (ASTRAMICRO.NS) is 15.9%.

The Cost of Equity of Astra Micro Wave Products Ltd (ASTRAMICRO.NS) is 16.15%.

The Cost of Debt of Astra Micro Wave Products Ltd (ASTRAMICRO.NS) is 9.15%.

	Range	Selected
Cost of equity	14.00% - 18.30%	16.15%
Tax rate	24.60% - 24.80%	24.70%
Cost of debt	7.90% - 10.40%	9.15%
WACC	13.8% - 18.0%	15.9%

WACC

ASTRAMICRO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.86	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	18.30%

Tax rate	24.60%	24.80%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.90%	10.40%

After-tax WACC	13.8%	18.0%


Selected WACC	15.9%

ASTRAMICRO.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 ASTRAMICRO.NS:

cost_of_equity (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.