GPTINFRA.NS
GPT Infraprojects Ltd
Price:  
127.95 
INR
Volume:  
81,712.00
India | Construction & Engineering
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

GPTINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of GPT Infraprojects Ltd (GPTINFRA.NS) is 14.9%.

The Cost of Equity of GPT Infraprojects Ltd (GPTINFRA.NS) is 15.45%.
The Cost of Debt of GPT Infraprojects Ltd (GPTINFRA.NS) is 11.05%.

Range Selected
Cost of equity 13.30% - 17.60% 15.45%
Tax rate 26.80% - 28.80% 27.80%
Cost of debt 8.10% - 14.00% 11.05%
WACC 12.7% - 17.0% 14.9%
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 0.77 1.05
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.30% 17.60%
Tax rate 26.80% 28.80%
Debt/Equity ratio 0.08 0.08
Cost of debt 8.10% 14.00%
After-tax WACC 12.7% 17.0%
Selected WACC 14.9%

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 (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.