INDIGRID.NS WACC - Weighted Average Cost of Capital

The WACC of India Grid Trust (INDIGRID.NS) is 12.0%.

The Cost of Equity of India Grid Trust (INDIGRID.NS) is 11.40%.

The Cost of Debt of India Grid Trust (INDIGRID.NS) is 12.75%.

	Range	Selected
Cost of equity	10.50% - 12.30%	11.40%
Tax rate	1.50% - 1.90%	1.70%
Cost of debt	10.10% - 15.40%	12.75%
WACC	10.2% - 13.7%	12.0%

WACC

INDIGRID.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	12.30%

Tax rate	1.50%	1.90%
Debt/Equity ratio	1.02	1.02
Cost of debt	10.10%	15.40%

After-tax WACC	10.2%	13.7%


Selected WACC	12.0%

INDIGRID.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 INDIGRID.NS:

cost_of_equity (11.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.