SADBHIN.NS WACC - Weighted Average Cost of Capital

The WACC of Sadbhav Infrastructure Projects Ltd (SADBHIN.NS) is 12.3%.

The Cost of Equity of Sadbhav Infrastructure Projects Ltd (SADBHIN.NS) is 140.80%.

The Cost of Debt of Sadbhav Infrastructure Projects Ltd (SADBHIN.NS) is 10.55%.

	Range	Selected
Cost of equity	70.10% - 211.50%	140.80%
Tax rate	11.70% - 26.90%	19.30%
Cost of debt	10.50% - 10.60%	10.55%
WACC	11.0% - 13.7%	12.3%

WACC

SADBHIN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	7.61	21.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	70.10%	211.50%

Tax rate	11.70%	26.90%
Debt/Equity ratio	33.46	33.46
Cost of debt	10.50%	10.60%

After-tax WACC	11.0%	13.7%


Selected WACC	12.3%

SADBHIN.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 SADBHIN.NS:

cost_of_equity (140.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (7.61) + 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.