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 11.55%.

The Cost of Debt of Atal Realtech Ltd (ATALREAL.NS) is 15.95%.

	Range	Selected
Cost of equity	10.20% - 12.90%	11.55%
Tax rate	30.00% - 30.90%	30.45%
Cost of debt	10.00% - 21.90%	15.95%
WACC	9.9% - 13.1%	11.5%

WACC

ATALREAL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.90%

Tax rate	30.00%	30.90%
Debt/Equity ratio	0.1	0.1
Cost of debt	10.00%	21.90%

After-tax WACC	9.9%	13.1%


Selected WACC	11.5%

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 (11.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.