503675.BO WACC - Weighted Average Cost of Capital
The WACC of Wagend Infra Venture Ltd (503675.BO) is 10.0%.
| Range | Selected | |
| Cost of equity | 13.2% - 18.5% | 15.85% |
| Tax rate | 12.7% - 20.0% | 16.35% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 8.8% - 11.3% | 10.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.77 | 1.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.2% | 18.5% |
| Tax rate | 12.7% | 20.0% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 8.8% | 11.3% |
| Selected WACC | 10.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 503675.BO | Wagend Infra Venture Ltd | 1.05 | 0.99 | 0.52 |
| 500426.BO | UTL Industries Ltd | 0 | 0.83 | 0.83 |
| 522231.BO | Conart Engineers Ltd | 0 | 0.72 | 0.72 |
| 531343.BO | India Infraspace Ltd | 1.9 | -0.19 | -0.07 |
| 531444.BO | Vardhman Concrete Ltd | 1.79 | 0.92 | 0.36 |
| 531540.BO | Maruti Infrastructure Ltd | 0.27 | 0.75 | 0.61 |
| 531900.BO | CCL International Ltd | 0.54 | 1.27 | 0.87 |
| 540147.BO | Shashijit Infraprojects Ltd | 2.25 | 0.42 | 0.14 |
| BRIGHT.NS | Bright Solar Ltd | 0.09 | 1.6 | 1.49 |
| MUKANDENGG.NS | Mukand Engineers Ltd | 3.55 | 1.35 | 0.34 |
| SKIL.NS | Skil Infrastructure Ltd | 28.63 | -0.06 | 0 |
| Low | High | |
| Unlevered beta | 0.36 | 0.61 |
| Relevered beta | 0.66 | 1.22 |
| Adjusted relevered beta | 0.77 | 1.15 |
503675.BO'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 503675.BO:
cost_of_equity (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.