IEX.NS WACC - Weighted Average Cost of Capital

The WACC of Indian Energy Exchange Ltd (IEX.NS) is 14.9%.

The Cost of Equity of Indian Energy Exchange Ltd (IEX.NS) is 14.95%.

The Cost of Debt of Indian Energy Exchange Ltd (IEX.NS) is 10.05%.

	Range	Selected
Cost of equity	13.10% - 16.80%	14.95%
Tax rate	23.90% - 23.90%	23.90%
Cost of debt	7.50% - 12.60%	10.05%
WACC	13.1% - 16.8%	14.9%

WACC

IEX.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.75	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	16.80%

Tax rate	23.90%	23.90%
Debt/Equity ratio	0	0
Cost of debt	7.50%	12.60%

After-tax WACC	13.1%	16.8%


Selected WACC	14.9%

IEX.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 IEX.NS:

cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.