MAANALU.NS WACC - Weighted Average Cost of Capital

The WACC of Maan Aluminium Ltd (MAANALU.NS) is 14.7%.

The Cost of Equity of Maan Aluminium Ltd (MAANALU.NS) is 15.60%.

The Cost of Debt of Maan Aluminium Ltd (MAANALU.NS) is 7.25%.

	Range	Selected
Cost of equity	14.30% - 16.90%	15.60%
Tax rate	25.50% - 25.50%	25.50%
Cost of debt	7.00% - 7.50%	7.25%
WACC	13.5% - 15.9%	14.7%

WACC

MAANALU.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.89	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	16.90%

Tax rate	25.50%	25.50%
Debt/Equity ratio	0.1	0.1
Cost of debt	7.00%	7.50%

After-tax WACC	13.5%	15.9%


Selected WACC	14.7%

MAANALU.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 MAANALU.NS:

cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.