ARCHIDPLY.NS WACC - Weighted Average Cost of Capital

The WACC of Archidply Industries Ltd (ARCHIDPLY.NS) is 13.6%.

The Cost of Equity of Archidply Industries Ltd (ARCHIDPLY.NS) is 20.10%.

The Cost of Debt of Archidply Industries Ltd (ARCHIDPLY.NS) is 13.05%.

	Range	Selected
Cost of equity	18.00% - 22.20%	20.10%
Tax rate	26.70% - 33.30%	30.00%
Cost of debt	10.70% - 15.40%	13.05%
WACC	12.0% - 15.1%	13.6%

WACC

ARCHIDPLY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.34	1.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.00%	22.20%

Tax rate	26.70%	33.30%
Debt/Equity ratio	1.45	1.45
Cost of debt	10.70%	15.40%

After-tax WACC	12.0%	15.1%


Selected WACC	13.6%

ARCHIDPLY.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 ARCHIDPLY.NS:

cost_of_equity (20.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.34) + 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.