ENGINERSIN.NS
Engineers India Ltd
Price:  
216.48 
INR
Volume:  
3,511,923.00
India | Construction & Engineering
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ENGINERSIN.NS WACC - Weighted Average Cost of Capital

The WACC of Engineers India Ltd (ENGINERSIN.NS) is 16.9%.

The Cost of Equity of Engineers India Ltd (ENGINERSIN.NS) is 17.00%.
The Cost of Debt of Engineers India Ltd (ENGINERSIN.NS) is 5.00%.

Range Selected
Cost of equity 13.70% - 20.30% 17.00%
Tax rate 24.30% - 24.90% 24.60%
Cost of debt 5.00% - 5.00% 5.00%
WACC 13.7% - 20.2% 16.9%
WACC

ENGINERSIN.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.82 1.33
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.70% 20.30%
Tax rate 24.30% 24.90%
Debt/Equity ratio 0 0
Cost of debt 5.00% 5.00%
After-tax WACC 13.7% 20.2%
Selected WACC 16.9%

ENGINERSIN.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 ENGINERSIN.NS:

cost_of_equity (17.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.82) + 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.