AUSOMENT.NS WACC - Weighted Average Cost of Capital

The WACC of Ausom Enterprise Ltd (AUSOMENT.NS) is 11.3%.

The Cost of Equity of Ausom Enterprise Ltd (AUSOMENT.NS) is 11.35%.

The Cost of Debt of Ausom Enterprise Ltd (AUSOMENT.NS) is 5.75%.

	Range	Selected
Cost of equity	10.20% - 12.50%	11.35%
Tax rate	17.80% - 20.00%	18.90%
Cost of debt	4.00% - 7.50%	5.75%
WACC	10.2% - 12.5%	11.3%

WACC

AUSOMENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.4	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.50%

Tax rate	17.80%	20.00%
Debt/Equity ratio	0	0
Cost of debt	4.00%	7.50%

After-tax WACC	10.2%	12.5%


Selected WACC	11.3%

AUSOMENT.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 AUSOMENT.NS:

cost_of_equity (11.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.