RPPINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of RPP Infra Projects Ltd (RPPINFRA.NS) is 13.1%.

The Cost of Equity of RPP Infra Projects Ltd (RPPINFRA.NS) is 13.70%.

The Cost of Debt of RPP Infra Projects Ltd (RPPINFRA.NS) is 12.90%.

	Range	Selected
Cost of equity	10.90% - 16.50%	13.70%
Tax rate	30.30% - 31.20%	30.75%
Cost of debt	8.30% - 17.50%	12.90%
WACC	10.3% - 15.9%	13.1%

WACC

RPPINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.49	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	16.50%

Tax rate	30.30%	31.20%
Debt/Equity ratio	0.15	0.15
Cost of debt	8.30%	17.50%

After-tax WACC	10.3%	15.9%


Selected WACC	13.1%

RPPINFRA.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 RPPINFRA.NS:

cost_of_equity (13.70%) = 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.