ADANIENT.NS
Adani Enterprises Ltd
Price:  
2,251.00 
INR
Volume:  
1,006,000.00
India | Trading Companies & Distributors
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ADANIENT.NS WACC - Weighted Average Cost of Capital

The WACC of Adani Enterprises Ltd (ADANIENT.NS) is 14.0%.

The Cost of Equity of Adani Enterprises Ltd (ADANIENT.NS) is 15.30%.
The Cost of Debt of Adani Enterprises Ltd (ADANIENT.NS) is 12.90%.

Range Selected
Cost of equity 14.10% - 16.50% 15.30%
Tax rate 31.70% - 32.50% 32.10%
Cost of debt 10.50% - 15.30% 12.90%
WACC 12.7% - 15.3% 14.0%
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 0.87 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.10% 16.50%
Tax rate 31.70% 32.50%
Debt/Equity ratio 0.25 0.25
Cost of debt 10.50% 15.30%
After-tax WACC 12.7% 15.3%
Selected WACC 14.0%

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 (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.