PROZONINTU.NS WACC - Weighted Average Cost of Capital

The WACC of Prozone Intu Properties Ltd (PROZONINTU.NS) is 12.6%.

The Cost of Equity of Prozone Intu Properties Ltd (PROZONINTU.NS) is 15.80%.

The Cost of Debt of Prozone Intu Properties Ltd (PROZONINTU.NS) is 12.35%.

	Range	Selected
Cost of equity	11.30% - 20.30%	15.80%
Tax rate	15.90% - 30.70%	23.30%
Cost of debt	8.10% - 16.60%	12.35%
WACC	9.1% - 16.0%	12.6%

WACC

PROZONINTU.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	0.46	1.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	20.30%

Tax rate	15.90%	30.70%
Debt/Equity ratio	0.95	0.95
Cost of debt	8.10%	16.60%

After-tax WACC	9.1%	16.0%


Selected WACC	12.6%

PROZONINTU.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 PROZONINTU.NS:

cost_of_equity (15.80%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (0.46) + 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.