AXISCADES.NS WACC - Weighted Average Cost of Capital

The WACC of Axiscades Technologies Ltd (AXISCADES.NS) is 10.8%.

The Cost of Equity of Axiscades Technologies Ltd (AXISCADES.NS) is 10.80%.

The Cost of Debt of Axiscades Technologies Ltd (AXISCADES.NS) is 19.40%.

	Range	Selected
Cost of equity	9.90% - 11.70%	10.80%
Tax rate	36.80% - 37.50%	37.15%
Cost of debt	7.90% - 30.90%	19.40%
WACC	9.7% - 12.0%	10.8%

WACC

AXISCADES.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.36	0.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.90%	11.70%

Tax rate	36.80%	37.50%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.90%	30.90%

After-tax WACC	9.7%	12.0%


Selected WACC	10.8%

AXISCADES.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 AXISCADES.NS:

cost_of_equity (10.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.36) + 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.