ATALREAL.NS
Atal Realtech Ltd
Price:  
19.62 
INR
Volume:  
1,039,495
India | Construction

ATALREAL.NS WACC - Weighted Average Cost of Capital

The WACC of Atal Realtech Ltd (ATALREAL.NS) is 11.5%.

The Cost of Equity of Atal Realtech Ltd (ATALREAL.NS) is 11.6%.
The Cost of Debt of Atal Realtech Ltd (ATALREAL.NS) is 13.25%.

RangeSelected
Cost of equity10.5% - 12.7%11.6%
Tax rate27.8% - 29.8%28.8%
Cost of debt9.1% - 17.4%13.25%
WACC10.2% - 12.7%11.5%
WACC

ATALREAL.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.440.52
Additional risk adjustments0.0%0.5%
Cost of equity10.5%12.7%
Tax rate27.8%29.8%
Debt/Equity ratio
0.070.07
Cost of debt9.1%17.4%
After-tax WACC10.2%12.7%
Selected WACC11.5%

ATALREAL.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 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.