GREENPOWER.NS WACC - Weighted Average Cost of Capital

The WACC of Orient Green Power Company Ltd (GREENPOWER.NS) is 12.6%.

The Cost of Equity of Orient Green Power Company Ltd (GREENPOWER.NS) is 14.60%.

The Cost of Debt of Orient Green Power Company Ltd (GREENPOWER.NS) is 10.20%.

	Range	Selected
Cost of equity	12.50% - 16.70%	14.60%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	8.30% - 12.10%	10.20%
WACC	10.8% - 14.5%	12.6%

WACC

GREENPOWER.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	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	16.70%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.36	0.36
Cost of debt	8.30%	12.10%

After-tax WACC	10.8%	14.5%


Selected WACC	12.6%

GREENPOWER.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 GREENPOWER.NS:

cost_of_equity (14.60%) = 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.