AVANTIFEED.NS WACC - Weighted Average Cost of Capital

The WACC of Avanti Feeds Ltd (AVANTIFEED.NS) is 14.5%.

The Cost of Equity of Avanti Feeds Ltd (AVANTIFEED.NS) is 14.50%.

The Cost of Debt of Avanti Feeds Ltd (AVANTIFEED.NS) is 23.25%.

	Range	Selected
Cost of equity	13.40% - 15.60%	14.50%
Tax rate	24.40% - 25.30%	24.85%
Cost of debt	7.50% - 39.00%	23.25%
WACC	13.4% - 15.6%	14.5%

WACC

AVANTIFEED.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.78	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	15.60%

Tax rate	24.40%	25.30%
Debt/Equity ratio	0	0
Cost of debt	7.50%	39.00%

After-tax WACC	13.4%	15.6%


Selected WACC	14.5%

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 (14.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.