531540.BO WACC - Weighted Average Cost of Capital

The WACC of Maruti Infrastructure Ltd (531540.BO) is 12.6%.

The Cost of Equity of Maruti Infrastructure Ltd (531540.BO) is 13.85%.

The Cost of Debt of Maruti Infrastructure Ltd (531540.BO) is 9.50%.

	Range	Selected
Cost of equity	11.90% - 15.80%	13.85%
Tax rate	27.00% - 31.50%	29.25%
Cost of debt	8.50% - 10.50%	9.50%
WACC	10.9% - 14.3%	12.6%

WACC

531540.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.80%

Tax rate	27.00%	31.50%
Debt/Equity ratio	0.22	0.22
Cost of debt	8.50%	10.50%

After-tax WACC	10.9%	14.3%


Selected WACC	12.6%

531540.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 531540.BO:

cost_of_equity (13.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.