542323.BO
KPI Global Infrastructure Ltd
Price:  
364.15 
INR
Volume:  
107,785.00
India | Independent Power and Renewable Electricity Producers
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542323.BO WACC - Weighted Average Cost of Capital

The WACC of KPI Global Infrastructure Ltd (542323.BO) is 10.5%.

The Cost of Equity of KPI Global Infrastructure Ltd (542323.BO) is 13.05%.
The Cost of Debt of KPI Global Infrastructure Ltd (542323.BO) is 5.00%.

Range Selected
Cost of equity 11.80% - 14.30% 13.05%
Tax rate 29.20% - 34.60% 31.90%
Cost of debt 5.00% - 5.00% 5.00%
WACC 9.6% - 11.4% 10.5%
WACC

542323.BO WACC calculation

Category Low High
Long-term bond rate 7.5% 8.0%
Equity market risk premium 6.9% 7.9%
Adjusted beta 0.62 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.80% 14.30%
Tax rate 29.20% 34.60%
Debt/Equity ratio 0.36 0.36
Cost of debt 5.00% 5.00%
After-tax WACC 9.6% 11.4%
Selected WACC 10.5%

542323.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 542323.BO:

cost_of_equity (13.05%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.62) + 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.