CAPACITE.NS WACC - Weighted Average Cost of Capital

The WACC of Capacite Infraprojects Ltd (CAPACITE.NS) is 14.7%.

The Cost of Equity of Capacite Infraprojects Ltd (CAPACITE.NS) is 15.10%.

The Cost of Debt of Capacite Infraprojects Ltd (CAPACITE.NS) is 17.90%.

	Range	Selected
Cost of equity	13.40% - 16.80%	15.10%
Tax rate	26.20% - 27.30%	26.75%
Cost of debt	8.60% - 27.20%	17.90%
WACC	12.1% - 17.3%	14.7%

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	0.79	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	16.80%

Tax rate	26.20%	27.30%
Debt/Equity ratio	0.23	0.23
Cost of debt	8.60%	27.20%

After-tax WACC	12.1%	17.3%


Selected WACC	14.7%

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 (15.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.