GEPIL.NS WACC - Weighted Average Cost of Capital

The WACC of Ge Power India Ltd (GEPIL.NS) is 12.6%.

The Cost of Equity of Ge Power India Ltd (GEPIL.NS) is 13.70%.

The Cost of Debt of Ge Power India Ltd (GEPIL.NS) is 5.95%.

	Range	Selected
Cost of equity	10.90% - 16.50%	13.70%
Tax rate	0.40% - 12.00%	6.20%
Cost of debt	4.40% - 7.50%	5.95%
WACC	10.0% - 15.2%	12.6%

WACC

GEPIL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.48	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	16.50%

Tax rate	0.40%	12.00%
Debt/Equity ratio	0.15	0.15
Cost of debt	4.40%	7.50%

After-tax WACC	10.0%	15.2%


Selected WACC	12.6%

GEPIL.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 GEPIL.NS:

cost_of_equity (13.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.