SIMPLEXINF.NS WACC - Weighted Average Cost of Capital

The WACC of Simplex Infrastructures Ltd (SIMPLEXINF.NS) is 11.7%.

The Cost of Equity of Simplex Infrastructures Ltd (SIMPLEXINF.NS) is 15.25%.

The Cost of Debt of Simplex Infrastructures Ltd (SIMPLEXINF.NS) is 16.20%.

	Range	Selected
Cost of equity	10.90% - 19.60%	15.25%
Tax rate	33.40% - 33.80%	33.60%
Cost of debt	5.50% - 26.90%	16.20%
WACC	5.2% - 18.2%	11.7%

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	0.49	1.26

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	19.60%

Tax rate	33.40%	33.80%
Debt/Equity ratio	3.68	3.68
Cost of debt	5.50%	26.90%

After-tax WACC	5.2%	18.2%


Selected WACC	11.7%

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 (15.25%) = 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.