AVANTIFEED.NS WACC - Weighted Average Cost of Capital
The WACC of Avanti Feeds Ltd (AVANTIFEED.NS) is 17.5%.
| Range | Selected | |
| Cost of equity | 16.1% - 18.9% | 17.5% |
| Tax rate | 23.4% - 25.2% | 24.3% |
| Cost of debt | 7.5% - 62.2% | 34.85% |
| WACC | 16.0% - 18.9% | 17.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.11 | 1.18 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.1% | 18.9% |
| Tax rate | 23.4% | 25.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 62.2% |
| After-tax WACC | 16.0% | 18.9% |
| Selected WACC | 17.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AVANTIFEED.NS | Avanti Feeds Ltd | 0 | 1.55 | 1.55 |
| BALRAMCHIN.NS | Balrampur Chini Mills Ltd | 0.18 | 1.38 | 1.21 |
| DAAWAT.NS | LT Foods Ltd | 0.17 | 1.49 | 1.32 |
| DALMIASUG.NS | Dalmia Bharat Sugar and Industries Ltd | 0.4 | 1.65 | 1.27 |
| DHAMPURSUG.NS | Dhampur Sugar Mills Ltd | 1.01 | 1.67 | 0.95 |
| KRBL.NS | KRBL Ltd | 0.07 | 1.36 | 1.29 |
| PARAGMILK.NS | Parag Milk Foods Ltd | 0.25 | 0.67 | 0.57 |
| RENUKA.NS | Shree Renuka Sugars Ltd | 0.85 | 1.77 | 1.07 |
| SANWARIA.NS | Sanwaria Consumer Ltd | 24.93 | 0.15 | 0.01 |
| TRIVENI.NS | Triveni Engineering and Industries Ltd | 0.15 | 1.47 | 1.32 |
| Low | High | |
| Unlevered beta | 1.16 | 1.27 |
| Relevered beta | 1.16 | 1.27 |
| Adjusted relevered beta | 1.11 | 1.18 |
AVANTIFEED.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 AVANTIFEED.NS:
cost_of_equity (17.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.11) + 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.