SIMPLEXINF.NS WACC - Weighted Average Cost of Capital

The WACC of Simplex Infrastructures Ltd (SIMPLEXINF.NS) is 7.7%.

The Cost of Equity of Simplex Infrastructures Ltd (SIMPLEXINF.NS) is 12.55%.

The Cost of Debt of Simplex Infrastructures Ltd (SIMPLEXINF.NS) is 5.95%.

	Range	Selected
Cost of equity	10.30% - 14.80%	12.55%
Tax rate	33.80% - 37.70%	35.75%
Cost of debt	4.00% - 7.90%	5.95%
WACC	6.1% - 9.3%	7.7%

WACC

SIMPLEXINF.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.41	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	14.80%

Tax rate	33.80%	37.70%
Debt/Equity ratio	1.23	1.23
Cost of debt	4.00%	7.90%

After-tax WACC	6.1%	9.3%


Selected WACC	7.7%

SIMPLEXINF.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 SIMPLEXINF.NS:

cost_of_equity (12.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.