GPTINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of GPT Infraprojects Ltd (GPTINFRA.NS) is 14.1%.

The Cost of Equity of GPT Infraprojects Ltd (GPTINFRA.NS) is 14.70%.

The Cost of Debt of GPT Infraprojects Ltd (GPTINFRA.NS) is 11.70%.

	Range	Selected
Cost of equity	12.50% - 16.90%	14.70%
Tax rate	28.80% - 29.90%	29.35%
Cost of debt	8.60% - 14.80%	11.70%
WACC	11.9% - 16.3%	14.1%

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	0.68	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	16.90%

Tax rate	28.80%	29.90%
Debt/Equity ratio	0.11	0.11
Cost of debt	8.60%	14.80%

After-tax WACC	11.9%	16.3%


Selected WACC	14.1%

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 (14.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.