GAYAPROJ.NS WACC - Weighted Average Cost of Capital

The WACC of Gayatri Projects Ltd (GAYAPROJ.NS) is 10.1%.

The Cost of Equity of Gayatri Projects Ltd (GAYAPROJ.NS) is 24.55%.

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

	Range	Selected
Cost of equity	14.40% - 34.70%	24.55%
Tax rate	11.60% - 13.80%	12.70%
Cost of debt	7.00% - 14.20%	10.60%
WACC	6.6% - 13.5%	10.1%

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	0.91	2.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	34.70%

Tax rate	11.60%	13.80%
Debt/Equity ratio	17.8	17.8
Cost of debt	7.00%	14.20%

After-tax WACC	6.6%	13.5%


Selected WACC	10.1%

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 (24.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.