ADANIGREEN.NS
Adani Green Energy Ltd
Price:  
1,035.60 
INR
Volume:  
1,212,007.00
India | Independent Power and Renewable Electricity Producers
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ADANIGREEN.NS WACC - Weighted Average Cost of Capital

The WACC of Adani Green Energy Ltd (ADANIGREEN.NS) is 13.5%.

The Cost of Equity of Adani Green Energy Ltd (ADANIGREEN.NS) is 15.50%.
The Cost of Debt of Adani Green Energy Ltd (ADANIGREEN.NS) is 10.95%.

Range Selected
Cost of equity 12.70% - 18.30% 15.50%
Tax rate 13.50% - 20.60% 17.05%
Cost of debt 9.80% - 12.10% 10.95%
WACC 11.4% - 15.6% 13.5%
WACC

ADANIGREEN.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.7 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.70% 18.30%
Tax rate 13.50% 20.60%
Debt/Equity ratio 0.46 0.46
Cost of debt 9.80% 12.10%
After-tax WACC 11.4% 15.6%
Selected WACC 13.5%

ADANIGREEN.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 ADANIGREEN.NS:

cost_of_equity (15.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.