ASTRON.NS WACC - Weighted Average Cost of Capital

The WACC of Astron Paper & Board Mill Ltd (ASTRON.NS) is 10.0%.

The Cost of Equity of Astron Paper & Board Mill Ltd (ASTRON.NS) is 14.15%.

The Cost of Debt of Astron Paper & Board Mill Ltd (ASTRON.NS) is 8.35%.

	Range	Selected
Cost of equity	12.10% - 16.20%	14.15%
Tax rate	29.70% - 31.90%	30.80%
Cost of debt	7.00% - 9.70%	8.35%
WACC	8.6% - 11.5%	10.0%

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	0.63	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	16.20%

Tax rate	29.70%	31.90%
Debt/Equity ratio	0.97	0.97
Cost of debt	7.00%	9.70%

After-tax WACC	8.6%	11.5%


Selected WACC	10.0%

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 (14.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.