KRIDHANINF.NS WACC - Weighted Average Cost of Capital

The WACC of Kridhan Infra Ltd (KRIDHANINF.NS) is 11.5%.

The Cost of Equity of Kridhan Infra Ltd (KRIDHANINF.NS) is 15.55%.

The Cost of Debt of Kridhan Infra Ltd (KRIDHANINF.NS) is 5.00%.

	Range	Selected
Cost of equity	13.80% - 17.30%	15.55%
Tax rate	0.20% - 0.40%	0.30%
Cost of debt	5.00% - 5.00%	5.00%
WACC	10.4% - 12.6%	11.5%

WACC

KRIDHANINF.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.83	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.80%	17.30%

Tax rate	0.20%	0.40%
Debt/Equity ratio	0.61	0.61
Cost of debt	5.00%	5.00%

After-tax WACC	10.4%	12.6%


Selected WACC	11.5%

KRIDHANINF.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 KRIDHANINF.NS:

cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.