HUDCO.NS
Housing and Urban Development Corporation Ltd
Price:  
214.21 
INR
Volume:  
19,360,060.00
India | Diversified Financial Services
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HUDCO.NS WACC - Weighted Average Cost of Capital

The WACC of Housing and Urban Development Corporation Ltd (HUDCO.NS) is 7.1%.

The Cost of Equity of Housing and Urban Development Corporation Ltd (HUDCO.NS) is 12.70%.
The Cost of Debt of Housing and Urban Development Corporation Ltd (HUDCO.NS) is 5.00%.

Range Selected
Cost of equity 10.50% - 14.90% 12.70%
Tax rate 25.60% - 26.10% 25.85%
Cost of debt 5.00% - 5.00% 5.00%
WACC 6.2% - 7.9% 7.1%
WACC

HUDCO.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.43 0.76
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.50% 14.90%
Tax rate 25.60% 26.10%
Debt/Equity ratio 1.67 1.67
Cost of debt 5.00% 5.00%
After-tax WACC 6.2% 7.9%
Selected WACC 7.1%

HUDCO.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 HUDCO.NS:

cost_of_equity (12.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.