INOXWIND.NS WACC - Weighted Average Cost of Capital
The WACC of Inox Wind Ltd (INOXWIND.NS) is 11.9%.
| Range | Selected | |
| Cost of equity | 10.7% - 13.8% | 12.25% |
| Tax rate | 20.1% - 30.3% | 25.2% |
| Cost of debt | 12.1% - 14.0% | 13.05% |
| WACC | 10.6% - 13.3% | 11.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.46 | 0.64 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 13.8% |
| Tax rate | 20.1% | 30.3% |
| Debt/Equity ratio | 0.13 | 0.13 |
| Cost of debt | 12.1% | 14.0% |
| After-tax WACC | 10.6% | 13.3% |
| Selected WACC | 11.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| INOXWIND.NS | Inox Wind Ltd | 0.13 | 2.26 | 2.06 |
| 3856.T | Abalance Corp | 4.87 | 1.57 | 0.35 |
| 504341.BO | Ravindra Energy Ltd | 0.07 | 0.28 | 0.27 |
| 517467.BO | Marsons Ltd | 0 | -1.06 | -1.06 |
| 531215.BO | Rts Power Corporation Ltd | 0.2 | 0.61 | 0.53 |
| 540358.BO | RMC Switchgears Ltd | 0.06 | 0.03 | 0.03 |
| ELECON.NS | Elecon Engineering Company Ltd | 0 | 1.89 | 1.88 |
| INDLMETER.NS | IMP Powers Ltd | 52.95 | 1.18 | 0.03 |
| TDPOWERSYS.NS | TD Power Systems Ltd | 0 | 1.97 | 1.97 |
| TRIL.NS | Transformers and Rectifiers (India) Ltd | 0.02 | 0.04 | 0.04 |
| TRITURBINE.NS | Triveni Turbine Ltd | 0 | 1.44 | 1.44 |
| Low | High | |
| Unlevered beta | 0.27 | 0.53 |
| Relevered beta | 0.19 | 0.46 |
| Adjusted relevered beta | 0.46 | 0.64 |
INOXWIND.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 INOXWIND.NS:
cost_of_equity (12.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.