A2ZINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of A2z Infra Engineering Ltd (A2ZINFRA.NS) is 10.9%.

The Cost of Equity of A2z Infra Engineering Ltd (A2ZINFRA.NS) is 13.15%.

The Cost of Debt of A2z Infra Engineering Ltd (A2ZINFRA.NS) is 5.95%.

	Range	Selected
Cost of equity	10.90% - 15.40%	13.15%
Tax rate	13.20% - 35.40%	24.30%
Cost of debt	4.00% - 7.90%	5.95%
WACC	9.0% - 12.8%	10.9%

WACC

A2ZINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.49	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	15.40%

Tax rate	13.20%	35.40%
Debt/Equity ratio	0.35	0.35
Cost of debt	4.00%	7.90%

After-tax WACC	9.0%	12.8%


Selected WACC	10.9%

A2ZINFRA.NS'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 A2ZINFRA.NS:

cost_of_equity (13.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.