ASTRAMICRO.NS WACC - Weighted Average Cost of Capital

The WACC of Astra Micro Wave Products Ltd (ASTRAMICRO.NS) is 15.0%.

The Cost of Equity of Astra Micro Wave Products Ltd (ASTRAMICRO.NS) is 15.20%.

The Cost of Debt of Astra Micro Wave Products Ltd (ASTRAMICRO.NS) is 10.30%.

	Range	Selected
Cost of equity	13.00% - 17.40%	15.20%
Tax rate	24.90% - 25.30%	25.10%
Cost of debt	7.80% - 12.80%	10.30%
WACC	12.8% - 17.2%	15.0%

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	0.74	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	17.40%

Tax rate	24.90%	25.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.80%	12.80%

After-tax WACC	12.8%	17.2%


Selected WACC	15.0%

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 (15.20%) = 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.