INOXWIND.NS WACC - Weighted Average Cost of Capital

The WACC of Inox Wind Ltd (INOXWIND.NS) is 12.2%.

The Cost of Equity of Inox Wind Ltd (INOXWIND.NS) is 12.30%.

The Cost of Debt of Inox Wind Ltd (INOXWIND.NS) is 11.25%.

	Range	Selected
Cost of equity	10.60% - 14.00%	12.30%
Tax rate	14.40% - 22.70%	18.55%
Cost of debt	10.00% - 12.50%	11.25%
WACC	10.5% - 13.8%	12.2%

WACC

INOXWIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	0.66

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	14.00%

Tax rate	14.40%	22.70%
Debt/Equity ratio	0.05	0.05
Cost of debt	10.00%	12.50%

After-tax WACC	10.5%	13.8%


Selected WACC	12.2%

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 (12.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.