GENUSPOWER.NS WACC - Weighted Average Cost of Capital

The WACC of Genus Power Infrastructures Ltd (GENUSPOWER.NS) is 12.4%.

The Cost of Equity of Genus Power Infrastructures Ltd (GENUSPOWER.NS) is 13.20%.

The Cost of Debt of Genus Power Infrastructures Ltd (GENUSPOWER.NS) is 11.25%.

	Range	Selected
Cost of equity	12.00% - 14.40%	13.20%
Tax rate	27.30% - 29.10%	28.20%
Cost of debt	7.90% - 14.60%	11.25%
WACC	11.0% - 13.8%	12.4%

WACC

GENUSPOWER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.62	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	14.40%

Tax rate	27.30%	29.10%
Debt/Equity ratio	0.2	0.2
Cost of debt	7.90%	14.60%

After-tax WACC	11.0%	13.8%


Selected WACC	12.4%

GENUSPOWER.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 GENUSPOWER.NS:

cost_of_equity (13.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.