ASTRAL.NS WACC - Weighted Average Cost of Capital

The WACC of Astral Poly Technik Ltd (ASTRAL.NS) is 13.6%.

The Cost of Equity of Astral Poly Technik Ltd (ASTRAL.NS) is 13.60%.

The Cost of Debt of Astral Poly Technik Ltd (ASTRAL.NS) is 23.70%.

	Range	Selected
Cost of equity	12.00% - 15.20%	13.60%
Tax rate	25.50% - 25.80%	25.65%
Cost of debt	7.50% - 39.90%	23.70%
WACC	12.0% - 15.3%	13.6%

WACC

ASTRAL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.62	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	15.20%

Tax rate	25.50%	25.80%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	39.90%

After-tax WACC	12.0%	15.3%


Selected WACC	13.6%

ASTRAL.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 ASTRAL.NS:

cost_of_equity (13.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.