INFIBEAM.NS
Infibeam Avenues Ltd
Price:  
15.96 
INR
Volume:  
25,050,308
India | IT Services

INFIBEAM.NS WACC - Weighted Average Cost of Capital

The WACC of Infibeam Avenues Ltd (INFIBEAM.NS) is 17.8%.

The Cost of Equity of Infibeam Avenues Ltd (INFIBEAM.NS) is 17.8%.
The Cost of Debt of Infibeam Avenues Ltd (INFIBEAM.NS) is 17%.

RangeSelected
Cost of equity16.0% - 19.6%17.8%
Tax rate20.0% - 24.0%22%
Cost of debt7.5% - 26.5%17%
WACC16.0% - 19.6%17.8%
WACC

INFIBEAM.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.11.26
Additional risk adjustments0.0%0.5%
Cost of equity16.0%19.6%
Tax rate20.0%24.0%
Debt/Equity ratio
00
Cost of debt7.5%26.5%
After-tax WACC16.0%19.6%
Selected WACC17.8%

INFIBEAM.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 INFIBEAM.NS:

cost_of_equity (17.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.