The WACC of Atal Realtech Ltd (ATALREAL.NS) is 11.5%.
Range | Selected | |
Cost of equity | 10.5% - 12.7% | 11.6% |
Tax rate | 27.8% - 29.8% | 28.8% |
Cost of debt | 9.1% - 17.4% | 13.25% |
WACC | 10.2% - 12.7% | 11.5% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.44 | 0.52 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 10.5% | 12.7% |
Tax rate | 27.8% | 29.8% |
Debt/Equity ratio | 0.07 | 0.07 |
Cost of debt | 9.1% | 17.4% |
After-tax WACC | 10.2% | 12.7% |
Selected WACC | 11.5% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
ATALREAL.NS | Atal Realtech Ltd | 0.07 | 0.53 | 0.5 |
508961.BO | Shricon Industries Ltd | 0 | 0.92 | 0.92 |
535693.BO | Brahmaputra Infrastructure Ltd | 0.93 | 0.26 | 0.16 |
539112.BO | SAB Industries Ltd | 0.28 | -0.04 | -0.03 |
542677.BO | Mahesh Developers Ltd | 2.18 | 0.03 | 0.01 |
CADSYS.NS | Cadsys ( India ) Ltd | 0.59 | 0.17 | 0.12 |
CI5.VN | No5 Construction Investment JSC | 0.17 | -0.25 | -0.23 |
HECPROJECT.NS | HEC Infra Projects Ltd | 0.2 | 1.28 | 1.12 |
PTDU.JK | Djasa Ubersakti Tbk PT | 6.49 | 1 | 0.18 |
UNIVASTU.NS | Univastu India Ltd | 0.13 | 0.44 | 0.41 |
Low | High | |
Unlevered beta | 0.14 | 0.27 |
Relevered beta | 0.16 | 0.28 |
Adjusted relevered beta | 0.44 | 0.52 |
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 ATALREAL.NS:
cost_of_equity (11.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.