SORILINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of SORIL Infra Resources Ltd (SORILINFRA.NS) is 10.3%.

The Cost of Equity of SORIL Infra Resources Ltd (SORILINFRA.NS) is 17.55%.

The Cost of Debt of SORIL Infra Resources Ltd (SORILINFRA.NS) is 7.25%.

	Range	Selected
Cost of equity	14.80% - 20.30%	17.55%
Tax rate	11.80% - 21.80%	16.80%
Cost of debt	4.00% - 10.50%	7.25%
WACC	7.9% - 12.8%	10.3%

WACC

SORILINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.96	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.80%	20.30%

Tax rate	11.80%	21.80%
Debt/Equity ratio	1.62	1.62
Cost of debt	4.00%	10.50%

After-tax WACC	7.9%	12.8%


Selected WACC	10.3%

SORILINFRA.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 SORILINFRA.NS:

cost_of_equity (17.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.