GPTINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of GPT Infraprojects Ltd (GPTINFRA.NS) is 15.4%.

The Cost of Equity of GPT Infraprojects Ltd (GPTINFRA.NS) is 16.05%.

The Cost of Debt of GPT Infraprojects Ltd (GPTINFRA.NS) is 11.05%.

	Range	Selected
Cost of equity	13.80% - 18.30%	16.05%
Tax rate	26.80% - 28.80%	27.80%
Cost of debt	8.10% - 14.00%	11.05%
WACC	13.2% - 17.6%	15.4%

WACC

GPTINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.84	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	18.30%

Tax rate	26.80%	28.80%
Debt/Equity ratio	0.09	0.09
Cost of debt	8.10%	14.00%

After-tax WACC	13.2%	17.6%


Selected WACC	15.4%

GPTINFRA.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 GPTINFRA.NS:

cost_of_equity (16.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.