ATALREAL.NS WACC - Weighted Average Cost of Capital

The WACC of Atal Realtech Ltd (ATALREAL.NS) is 10.7%.

The Cost of Equity of Atal Realtech Ltd (ATALREAL.NS) is 10.80%.

The Cost of Debt of Atal Realtech Ltd (ATALREAL.NS) is 12.20%.

	Range	Selected
Cost of equity	9.60% - 12.00%	10.80%
Tax rate	27.80% - 29.80%	28.80%
Cost of debt	7.00% - 17.40%	12.20%
WACC	9.3% - 12.0%	10.7%

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	0.33	0.45

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.60%	12.00%

Tax rate	27.80%	29.80%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.00%	17.40%

After-tax WACC	9.3%	12.0%


Selected WACC	10.7%

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 (10.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.33) + 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.