ASTRON.NS WACC - Weighted Average Cost of Capital

The WACC of Astron Paper & Board Mill Ltd (ASTRON.NS) is 9.7%.

The Cost of Equity of Astron Paper & Board Mill Ltd (ASTRON.NS) is 23.55%.

The Cost of Debt of Astron Paper & Board Mill Ltd (ASTRON.NS) is 10.30%.

	Range	Selected
Cost of equity	17.70% - 29.40%	23.55%
Tax rate	20.00% - 29.20%	24.60%
Cost of debt	7.00% - 13.60%	10.30%
WACC	7.2% - 12.3%	9.7%

WACC

ASTRON.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.31	2.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.70%	29.40%

Tax rate	20.00%	29.20%
Debt/Equity ratio	6.57	6.57
Cost of debt	7.00%	13.60%

After-tax WACC	7.2%	12.3%


Selected WACC	9.7%

ASTRON.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 ASTRON.NS:

cost_of_equity (23.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.31) + 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.