IFCI.NS
IFCI Ltd
Price:  
40.58 
INR
Volume:  
4,641,161.00
India | Diversified Financial Services
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

IFCI.NS WACC - Weighted Average Cost of Capital

The WACC of IFCI Ltd (IFCI.NS) is 9.3%.

The Cost of Equity of IFCI Ltd (IFCI.NS) is 11.75%.
The Cost of Debt of IFCI Ltd (IFCI.NS) is 5.75%.

Range Selected
Cost of equity 10.10% - 13.40% 11.75%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 4.00% - 7.50% 5.75%
WACC 7.8% - 10.7% 9.3%
WACC

IFCI.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.39 0.59
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.10% 13.40%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.47 0.47
Cost of debt 4.00% 7.50%
After-tax WACC 7.8% 10.7%
Selected WACC 9.3%

IFCI.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 IFCI.NS:

cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.