AURIONPRO.NS WACC - Weighted Average Cost of Capital

The WACC of Aurionpro Solutions Ltd (AURIONPRO.NS) is 16.2%.

The Cost of Equity of Aurionpro Solutions Ltd (AURIONPRO.NS) is 16.40%.

The Cost of Debt of Aurionpro Solutions Ltd (AURIONPRO.NS) is 8.05%.

	Range	Selected
Cost of equity	14.40% - 18.40%	16.40%
Tax rate	16.20% - 16.40%	16.30%
Cost of debt	7.50% - 8.60%	8.05%
WACC	14.2% - 18.2%	16.2%

WACC

AURIONPRO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.9	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	18.40%

Tax rate	16.20%	16.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	8.60%

After-tax WACC	14.2%	18.2%


Selected WACC	16.2%

AURIONPRO.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 AURIONPRO.NS:

cost_of_equity (16.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.