SPMLINFRA.NS
SPML Infra Ltd
Price:  
273.78 
INR
Volume:  
5,851,885
India | Construction & Engineering

SPMLINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of SPML Infra Ltd (SPMLINFRA.NS) is 10.9%.

The Cost of Equity of SPML Infra Ltd (SPMLINFRA.NS) is 13.2%.
The Cost of Debt of SPML Infra Ltd (SPMLINFRA.NS) is 5.75%.

RangeSelected
Cost of equity10.2% - 16.2%13.2%
Tax rate30.0% - 30.0%30%
Cost of debt4.0% - 7.5%5.75%
WACC8.4% - 13.5%10.9%
WACC

SPMLINFRA.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.40.89
Additional risk adjustments0.0%0.5%
Cost of equity10.2%16.2%
Tax rate30.0%30.0%
Debt/Equity ratio
0.320.32
Cost of debt4.0%7.5%
After-tax WACC8.4%13.5%
Selected WACC10.9%

SPMLINFRA.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 SPMLINFRA.NS:

cost_of_equity (13.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.