CAPACITE.NS WACC - Weighted Average Cost of Capital

The WACC of Capacite Infraprojects Ltd (CAPACITE.NS) is 15.1%.

The Cost of Equity of Capacite Infraprojects Ltd (CAPACITE.NS) is 15.50%.

The Cost of Debt of Capacite Infraprojects Ltd (CAPACITE.NS) is 16.65%.

	Range	Selected
Cost of equity	12.70% - 18.30%	15.50%
Tax rate	27.50% - 28.80%	28.15%
Cost of debt	8.30% - 25.00%	16.65%
WACC	12.0% - 18.2%	15.1%

WACC

CAPACITE.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	27.50%	28.80%
Debt/Equity ratio	0.12	0.12
Cost of debt	8.30%	25.00%

After-tax WACC	12.0%	18.2%


Selected WACC	15.1%

CAPACITE.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 CAPACITE.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.