ADANIPORTS.NS WACC - Weighted Average Cost of Capital
The WACC of Adani Ports and Special Economic Zone Ltd (ADANIPORTS.NS) is 12.5%.
| Range | Selected | |
| Cost of equity | 11.3% - 15.8% | 13.55% |
| Tax rate | 14.4% - 15.1% | 14.75% |
| Cost of debt | 6.4% - 8.1% | 7.25% |
| WACC | 10.5% - 14.5% | 12.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.53 | 0.85 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.3% | 15.8% |
| Tax rate | 14.4% | 15.1% |
| Debt/Equity ratio | 0.16 | 0.16 |
| Cost of debt | 6.4% | 8.1% |
| After-tax WACC | 10.5% | 14.5% |
| Selected WACC | 12.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ADANIPORTS.NS | Adani Ports and Special Economic Zone Ltd | 0.16 | 1.14 | 1 |
| 001872.SZ | China Merchants Port Group Co Ltd | 1.12 | 0.52 | 0.27 |
| 144.HK | China Merchants Port Holdings Co Ltd | 0.58 | 0.39 | 0.26 |
| 3382.HK | Tianjin Port Development Holdings Ltd | 1.33 | 0.58 | 0.27 |
| 600190.SS | Jinzhou Port Co Ltd | 4.18 | 0.41 | 0.09 |
| 601018.SS | Ningbo Zhoushan Port Co Ltd | 0.26 | 0.68 | 0.56 |
| GDL.NS | Gateway Distriparks Ltd | 0.2 | 1.01 | 0.86 |
| GPPL.NS | Gujarat Pipavav Port Ltd | 0.01 | 1.17 | 1.16 |
| NAVKARCORP.NS | Navkar Corporation Ltd | 0.13 | 1.65 | 1.48 |
| SICAL.NS | Sical Logistics Ltd | 29.79 | 1.54 | 0.06 |
| Low | High | |
| Unlevered beta | 0.27 | 0.68 |
| Relevered beta | 0.3 | 0.78 |
| Adjusted relevered beta | 0.53 | 0.85 |
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 (0.53) + 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.