GAYAPROJ.NS WACC - Weighted Average Cost of Capital

The WACC of Gayatri Projects Ltd (GAYAPROJ.NS) is 10.5%.

The Cost of Equity of Gayatri Projects Ltd (GAYAPROJ.NS) is 27.90%.

The Cost of Debt of Gayatri Projects Ltd (GAYAPROJ.NS) is 10.60%.

	Range	Selected
Cost of equity	15.40% - 40.40%	27.90%
Tax rate	11.60% - 13.80%	12.70%
Cost of debt	7.00% - 14.20%	10.60%
WACC	6.8% - 14.2%	10.5%

WACC

GAYAPROJ.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.02	3.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.40%	40.40%

Tax rate	11.60%	13.80%
Debt/Equity ratio	14.02	14.02
Cost of debt	7.00%	14.20%

After-tax WACC	6.8%	14.2%


Selected WACC	10.5%

GAYAPROJ.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 GAYAPROJ.NS:

cost_of_equity (27.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.02) + 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.