AYMSYNTEX.NS WACC - Weighted Average Cost of Capital

The WACC of Aym Syntex Ltd (AYMSYNTEX.NS) is 13.2%.

The Cost of Equity of Aym Syntex Ltd (AYMSYNTEX.NS) is 13.70%.

The Cost of Debt of Aym Syntex Ltd (AYMSYNTEX.NS) is 16.40%.

	Range	Selected
Cost of equity	12.60% - 14.80%	13.70%
Tax rate	34.80% - 37.70%	36.25%
Cost of debt	14.20% - 18.60%	16.40%
WACC	12.1% - 14.4%	13.2%

WACC

AYMSYNTEX.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	14.80%

Tax rate	34.80%	37.70%
Debt/Equity ratio	0.16	0.16
Cost of debt	14.20%	18.60%

After-tax WACC	12.1%	14.4%


Selected WACC	13.2%

AYMSYNTEX.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 AYMSYNTEX.NS:

cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.