511411.BO WACC - Weighted Average Cost of Capital

The WACC of Shristi Infrastructure Development Corporation Ltd (511411.BO) is 15.8%.

The Cost of Equity of Shristi Infrastructure Development Corporation Ltd (511411.BO) is 13.65%.

The Cost of Debt of Shristi Infrastructure Development Corporation Ltd (511411.BO) is 18.65%.

	Range	Selected
Cost of equity	11.30% - 16.00%	13.65%
Tax rate	6.10% - 15.50%	10.80%
Cost of debt	10.40% - 26.90%	18.65%
WACC	10.0% - 21.6%	15.8%

WACC

511411.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.53	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	16.00%

Tax rate	6.10%	15.50%
Debt/Equity ratio	4.92	4.92
Cost of debt	10.40%	26.90%

After-tax WACC	10.0%	21.6%


Selected WACC	15.8%

511411.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 511411.BO:

cost_of_equity (13.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.