AUTOIND.NS WACC - Weighted Average Cost of Capital

The WACC of Autoline Industries Ltd (AUTOIND.NS) is 17.1%.

The Cost of Equity of Autoline Industries Ltd (AUTOIND.NS) is 20.65%.

The Cost of Debt of Autoline Industries Ltd (AUTOIND.NS) is 11.10%.

	Range	Selected
Cost of equity	18.50% - 22.80%	20.65%
Tax rate	0.20% - 1.10%	0.65%
Cost of debt	10.00% - 12.20%	11.10%
WACC	15.4% - 18.8%	17.1%

WACC

AUTOIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.4	1.61

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.50%	22.80%

Tax rate	0.20%	1.10%
Debt/Equity ratio	0.58	0.58
Cost of debt	10.00%	12.20%

After-tax WACC	15.4%	18.8%


Selected WACC	17.1%

AUTOIND.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 AUTOIND.NS:

cost_of_equity (20.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.4) + 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.