PNCINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of PNC Infratech Ltd (PNCINFRA.NS) is 13.4%.

The Cost of Equity of PNC Infratech Ltd (PNCINFRA.NS) is 18.90%.

The Cost of Debt of PNC Infratech Ltd (PNCINFRA.NS) is 11.60%.

	Range	Selected
Cost of equity	16.90% - 20.90%	18.90%
Tax rate	29.90% - 31.40%	30.65%
Cost of debt	10.50% - 12.70%	11.60%
WACC	12.1% - 14.7%	13.4%

WACC

PNCINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.21	1.41

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.90%	20.90%

Tax rate	29.90%	31.40%
Debt/Equity ratio	1.03	1.03
Cost of debt	10.50%	12.70%

After-tax WACC	12.1%	14.7%


Selected WACC	13.4%

PNCINFRA.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 PNCINFRA.NS:

cost_of_equity (18.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.21) + 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.