ATLASCYCLE.NS WACC - Weighted Average Cost of Capital

The WACC of Atlas Cycles Haryana Ltd (ATLASCYCLE.NS) is 10.5%.

The Cost of Equity of Atlas Cycles Haryana Ltd (ATLASCYCLE.NS) is 11.55%.

The Cost of Debt of Atlas Cycles Haryana Ltd (ATLASCYCLE.NS) is 5.75%.

	Range	Selected
Cost of equity	10.30% - 12.80%	11.55%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	4.00% - 7.50%	5.75%
WACC	9.2% - 11.8%	10.5%

WACC

ATLASCYCLE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.41	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	12.80%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	7.50%

After-tax WACC	9.2%	11.8%


Selected WACC	10.5%

ATLASCYCLE.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 ATLASCYCLE.NS:

cost_of_equity (11.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.