HUDCO.NS WACC - Weighted Average Cost of Capital
The WACC of Housing and Urban Development Corporation Ltd (HUDCO.NS) is 7.2%.
| Range | Selected | |
| Cost of equity | 10.4% - 14.7% | 12.55% |
| Tax rate | 25.6% - 26.1% | 25.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.4% - 8.1% | 7.2% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.43 | 0.74 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.4% | 14.7% |
| Tax rate | 25.6% | 26.1% |
| Debt/Equity ratio | 1.53 | 1.53 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.4% | 8.1% |
| Selected WACC | 7.2% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| HUDCO.NS | Housing and Urban Development Corporation Ltd | 1.53 | 1.6 | 0.75 |
| 511724.BO | Baid Leasing and Finance Co Ltd | 0.44 | 0.07 | 0.05 |
| 512381.BO | Starteck Finance Ltd | 4.97 | -0.93 | -0.2 |
| 530067.BO | CSL Finance Ltd | 0.42 | 0.76 | 0.58 |
| 530265.BO | Sainik Finance and Industries Ltd | 4.27 | -0.87 | -0.21 |
| 530879.BO | Capital India Finance Ltd | 0.65 | 0.83 | 0.56 |
| 537069.BO | Arnold Holdings Ltd | 0.95 | 0.17 | 0.1 |
| 538732.BO | Vibrant Global Capital Ltd | 0.3 | 0.11 | 0.09 |
| SREINFRA.NS | Srei Infrastructure Finance Ltd | 305.9 | -0.32 | 0 |
| TFCILTD.NS | Tourism Finance Corporation of India Ltd | 0.46 | 1.42 | 1.06 |
| Low | High | |
| Unlevered beta | 0.07 | 0.28 |
| Relevered beta | 0.15 | 0.61 |
| Adjusted relevered beta | 0.43 | 0.74 |
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 (12.55%) = 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.