EXCEL.NS WACC - Weighted Average Cost of Capital

The WACC of Excel Realty N Infra Ltd (EXCEL.NS) is 11.1%.

The Cost of Equity of Excel Realty N Infra Ltd (EXCEL.NS) is 11.15%.

The Cost of Debt of Excel Realty N Infra Ltd (EXCEL.NS) is 8.55%.

	Range	Selected
Cost of equity	10.10% - 12.20%	11.15%
Tax rate	6.40% - 11.90%	9.15%
Cost of debt	7.50% - 9.60%	8.55%
WACC	10.1% - 12.2%	11.1%

WACC

EXCEL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.39	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.20%

Tax rate	6.40%	11.90%
Debt/Equity ratio	0	0
Cost of debt	7.50%	9.60%

After-tax WACC	10.1%	12.2%


Selected WACC	11.1%

EXCEL.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 EXCEL.NS:

cost_of_equity (11.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.