539620.BO WACC - Weighted Average Cost of Capital

The WACC of A Infrastructure Ltd (539620.BO) is 15.0%.

The Cost of Equity of A Infrastructure Ltd (539620.BO) is 18.60%.

The Cost of Debt of A Infrastructure Ltd (539620.BO) is 11.50%.

	Range	Selected
Cost of equity	17.00% - 20.20%	18.60%
Tax rate	24.40% - 25.40%	24.90%
Cost of debt	10.90% - 12.10%	11.50%
WACC	13.8% - 16.2%	15.0%

WACC

539620.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.22	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.00%	20.20%

Tax rate	24.40%	25.40%
Debt/Equity ratio	0.56	0.56
Cost of debt	10.90%	12.10%

After-tax WACC	13.8%	16.2%


Selected WACC	15.0%

539620.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 539620.BO:

cost_of_equity (18.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.22) + 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.