GTLINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of GTL Infrastructure Ltd (GTLINFRA.NS) is 9.1%.

The Cost of Equity of GTL Infrastructure Ltd (GTLINFRA.NS) is 22.00%.

The Cost of Debt of GTL Infrastructure Ltd (GTLINFRA.NS) is 6.30%.

	Range	Selected
Cost of equity	15.10% - 28.90%	22.00%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	4.00% - 8.60%	6.30%
WACC	6.0% - 12.1%	9.1%

WACC

GTLINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.99	2.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.10%	28.90%

Tax rate	30.00%	30.00%
Debt/Equity ratio	2.79	2.79
Cost of debt	4.00%	8.60%

After-tax WACC	6.0%	12.1%


Selected WACC	9.1%

GTLINFRA.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 GTLINFRA.NS:

cost_of_equity (22.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.99) + 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.