GUJAPOLLO.NS WACC - Weighted Average Cost of Capital

The WACC of Gujarat Apollo Industries Ltd (GUJAPOLLO.NS) is 14.4%.

The Cost of Equity of Gujarat Apollo Industries Ltd (GUJAPOLLO.NS) is 14.80%.

The Cost of Debt of Gujarat Apollo Industries Ltd (GUJAPOLLO.NS) is 8.45%.

	Range	Selected
Cost of equity	12.30% - 17.30%	14.80%
Tax rate	17.30% - 26.80%	22.05%
Cost of debt	7.00% - 9.90%	8.45%
WACC	12.0% - 16.8%	14.4%

WACC

GUJAPOLLO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	17.30%

Tax rate	17.30%	26.80%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.00%	9.90%

After-tax WACC	12.0%	16.8%


Selected WACC	14.4%

GUJAPOLLO.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 GUJAPOLLO.NS:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.