MAHLIFE.NS
Mahindra Lifespace Developers Ltd
Price:  
361 
INR
Volume:  
275,432
India | Real Estate Management & Development

MAHLIFE.NS WACC - Weighted Average Cost of Capital

The WACC of Mahindra Lifespace Developers Ltd (MAHLIFE.NS) is 12.9%.

The Cost of Equity of Mahindra Lifespace Developers Ltd (MAHLIFE.NS) is 13.25%.
The Cost of Debt of Mahindra Lifespace Developers Ltd (MAHLIFE.NS) is 13.9%.

RangeSelected
Cost of equity10.9% - 15.6%13.25%
Tax rate11.0% - 32.9%21.95%
Cost of debt7.0% - 20.8%13.9%
WACC10.5% - 15.4%12.9%
WACC

MAHLIFE.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.490.83
Additional risk adjustments0.0%0.5%
Cost of equity10.9%15.6%
Tax rate11.0%32.9%
Debt/Equity ratio
0.110.11
Cost of debt7.0%20.8%
After-tax WACC10.5%15.4%
Selected WACC12.9%

MAHLIFE.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 MAHLIFE.NS:

cost_of_equity (13.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.