AWHCL.NS
Antony Waste Handling Cell Ltd
Price:  
681 
INR
Volume:  
94,043
India | Commercial Services & Supplies

AWHCL.NS WACC - Weighted Average Cost of Capital

The WACC of Antony Waste Handling Cell Ltd (AWHCL.NS) is 14.4%.

The Cost of Equity of Antony Waste Handling Cell Ltd (AWHCL.NS) is 15.75%.
The Cost of Debt of Antony Waste Handling Cell Ltd (AWHCL.NS) is 10.2%.

RangeSelected
Cost of equity13.7% - 17.8%15.75%
Tax rate12.7% - 15.9%14.3%
Cost of debt8.6% - 11.8%10.2%
WACC12.5% - 16.3%14.4%
WACC

AWHCL.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.821.07
Additional risk adjustments0.0%0.5%
Cost of equity13.7%17.8%
Tax rate12.7%15.9%
Debt/Equity ratio
0.240.24
Cost of debt8.6%11.8%
After-tax WACC12.5%16.3%
Selected WACC14.4%

AWHCL.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 AWHCL.NS:

cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.