ADANIPORTS.NS WACC - Weighted Average Cost of Capital

The WACC of Adani Ports and Special Economic Zone Ltd (ADANIPORTS.NS) is 12.5%.

The Cost of Equity of Adani Ports and Special Economic Zone Ltd (ADANIPORTS.NS) is 13.55%.

The Cost of Debt of Adani Ports and Special Economic Zone Ltd (ADANIPORTS.NS) is 6.90%.

	Range	Selected
Cost of equity	11.30% - 15.80%	13.55%
Tax rate	14.40% - 15.10%	14.75%
Cost of debt	5.70% - 8.10%	6.90%
WACC	10.4% - 14.5%	12.5%

WACC

ADANIPORTS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.54	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	15.80%

Tax rate	14.40%	15.10%
Debt/Equity ratio	0.16	0.16
Cost of debt	5.70%	8.10%

After-tax WACC	10.4%	14.5%


Selected WACC	12.5%

ADANIPORTS.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 ADANIPORTS.NS:

cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.