541445.BO
WAA Solar Ltd
Price:  
77.61 
INR
Volume:  
4,800.00
India | Independent Power and Renewable Electricity Producers
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541445.BO WACC - Weighted Average Cost of Capital

The WACC of WAA Solar Ltd (541445.BO) is 11.4%.

The Cost of Equity of WAA Solar Ltd (541445.BO) is 17.15%.
The Cost of Debt of WAA Solar Ltd (541445.BO) is 9.20%.

Range Selected
Cost of equity 13.70% - 20.60% 17.15%
Tax rate 20.50% - 23.20% 21.85%
Cost of debt 8.40% - 10.00% 9.20%
WACC 9.6% - 13.1% 11.4%
WACC

541445.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.82 1.37
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.70% 20.60%
Tax rate 20.50% 23.20%
Debt/Equity ratio 1.38 1.38
Cost of debt 8.40% 10.00%
After-tax WACC 9.6% 13.1%
Selected WACC 11.4%

541445.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 541445.BO:

cost_of_equity (17.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.