MBLINFRA.NS
MBL Infrastructures Ltd
Price:  
43.80 
INR
Volume:  
49,538.00
India | Construction & Engineering
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MBLINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of MBL Infrastructures Ltd (MBLINFRA.NS) is 9.2%.

The Cost of Equity of MBL Infrastructures Ltd (MBLINFRA.NS) is 18.00%.
The Cost of Debt of MBL Infrastructures Ltd (MBLINFRA.NS) is 7.00%.

Range Selected
Cost of equity 13.90% - 22.10% 18.00%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 7.00% - 7.00% 7.00%
WACC 7.9% - 10.6% 9.2%
WACC

MBLINFRA.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.85 1.53
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.90% 22.10%
Tax rate 30.00% 30.00%
Debt/Equity ratio 2.03 2.03
Cost of debt 7.00% 7.00%
After-tax WACC 7.9% 10.6%
Selected WACC 9.2%

MBLINFRA.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 MBLINFRA.NS:

cost_of_equity (18.00%) = 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.