NAGREEKCAP.NS WACC - Weighted Average Cost of Capital

The WACC of Nagreeka Capital & Infrastructure Ltd (NAGREEKCAP.NS) is 10.3%.

The Cost of Equity of Nagreeka Capital & Infrastructure Ltd (NAGREEKCAP.NS) is 24.05%.

The Cost of Debt of Nagreeka Capital & Infrastructure Ltd (NAGREEKCAP.NS) is 8.25%.

	Range	Selected
Cost of equity	21.90% - 26.20%	24.05%
Tax rate	27.10% - 36.60%	31.85%
Cost of debt	7.40% - 9.10%	8.25%
WACC	9.6% - 11.0%	10.3%

WACC

NAGREEKCAP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.81	1.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	21.90%	26.20%

Tax rate	27.10%	36.60%
Debt/Equity ratio	2.93	2.93
Cost of debt	7.40%	9.10%

After-tax WACC	9.6%	11.0%


Selected WACC	10.3%

NAGREEKCAP.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 NAGREEKCAP.NS:

cost_of_equity (24.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.81) + 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.