AUSOMENT.NS WACC - Weighted Average Cost of Capital

The WACC of Ausom Enterprise Ltd (AUSOMENT.NS) is 11.8%.

The Cost of Equity of Ausom Enterprise Ltd (AUSOMENT.NS) is 12.35%.

The Cost of Debt of Ausom Enterprise Ltd (AUSOMENT.NS) is 5.60%.

	Range	Selected
Cost of equity	10.70% - 14.00%	12.35%
Tax rate	20.70% - 22.30%	21.50%
Cost of debt	4.20% - 7.00%	5.60%
WACC	10.2% - 13.4%	11.8%

WACC

AUSOMENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.47	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	14.00%

Tax rate	20.70%	22.30%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.20%	7.00%

After-tax WACC	10.2%	13.4%


Selected WACC	11.8%

AUSOMENT.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 AUSOMENT.NS:

cost_of_equity (12.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.