ADANIENT.NS WACC - Weighted Average Cost of Capital

The WACC of Adani Enterprises Ltd (ADANIENT.NS) is 11.4%.

The Cost of Equity of Adani Enterprises Ltd (ADANIENT.NS) is 12.95%.

The Cost of Debt of Adani Enterprises Ltd (ADANIENT.NS) is 10.30%.

	Range	Selected
Cost of equity	11.10% - 14.80%	12.95%
Tax rate	31.70% - 32.50%	32.10%
Cost of debt	10.10% - 10.50%	10.30%
WACC	10.0% - 12.8%	11.4%

WACC

ADANIENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	14.80%

Tax rate	31.70%	32.50%
Debt/Equity ratio	0.34	0.34
Cost of debt	10.10%	10.50%

After-tax WACC	10.0%	12.8%


Selected WACC	11.4%

ADANIENT.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 ADANIENT.NS:

cost_of_equity (12.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.