AWHCL.NS WACC - Weighted Average Cost of Capital

The WACC of Antony Waste Handling Cell Ltd (AWHCL.NS) is 11.1%.

The Cost of Equity of Antony Waste Handling Cell Ltd (AWHCL.NS) is 12.50%.

The Cost of Debt of Antony Waste Handling Cell Ltd (AWHCL.NS) is 8.05%.

	Range	Selected
Cost of equity	10.50% - 14.50%	12.50%
Tax rate	14.10% - 18.30%	16.20%
Cost of debt	7.00% - 9.10%	8.05%
WACC	9.4% - 12.8%	11.1%

WACC

AWHCL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.43	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	14.50%

Tax rate	14.10%	18.30%
Debt/Equity ratio	0.32	0.32
Cost of debt	7.00%	9.10%

After-tax WACC	9.4%	12.8%


Selected WACC	11.1%

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 (12.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.