ARSSINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of ARSS Infrastructure Projects Ltd (ARSSINFRA.NS) is 6.3%.

The Cost of Equity of ARSS Infrastructure Projects Ltd (ARSSINFRA.NS) is 20.15%.

The Cost of Debt of ARSS Infrastructure Projects Ltd (ARSSINFRA.NS) is 5.95%.

	Range	Selected
Cost of equity	13.10% - 27.20%	20.15%
Tax rate	5.10% - 11.10%	8.10%
Cost of debt	4.00% - 7.90%	5.95%
WACC	4.3% - 8.2%	6.3%

WACC

ARSSINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.75	2.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	27.20%

Tax rate	5.10%	11.10%
Debt/Equity ratio	16.85	16.85
Cost of debt	4.00%	7.90%

After-tax WACC	4.3%	8.2%


Selected WACC	6.3%

ARSSINFRA.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 ARSSINFRA.NS:

cost_of_equity (20.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.