IRBINVIT.NS
IRB InvIT Fund
Price:  
54.22 
INR
Volume:  
290,599
India | Construction

IRBINVIT.NS WACC - Weighted Average Cost of Capital

The WACC of IRB InvIT Fund (IRBINVIT.NS) is 12.4%.

The Cost of Equity of IRB InvIT Fund (IRBINVIT.NS) is 17.2%.
The Cost of Debt of IRB InvIT Fund (IRBINVIT.NS) is 7.5%.

RangeSelected
Cost of equity13.9% - 20.5%17.2%
Tax rate0.5% - 0.9%0.7%
Cost of debt6.9% - 8.1%7.5%
WACC10.5% - 14.4%12.4%
WACC

IRBINVIT.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.851.36
Additional risk adjustments0.0%0.5%
Cost of equity13.9%20.5%
Tax rate0.5%0.9%
Debt/Equity ratio
0.970.97
Cost of debt6.9%8.1%
After-tax WACC10.5%14.4%
Selected WACC12.4%

IRBINVIT.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 IRBINVIT.NS:

cost_of_equity (17.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.