SREINFRA.NS WACC - Weighted Average Cost of Capital
The WACC of Srei Infrastructure Finance Ltd (SREINFRA.NS) is 4.8%.
| Range | Selected | |
| Cost of equity | 37.0% - 109.6% | 73.3% |
| Tax rate | 2.6% - 12.6% | 7.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 5.0% - 4.7% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 3.63 | 10.93 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 37.0% | 109.6% |
| Tax rate | 2.6% | 12.6% |
| Debt/Equity ratio | 305.9 | 305.9 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 5.0% | 4.7% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SREINFRA.NS | Srei Infrastructure Finance Ltd | 305.9 | -0.32 | 0 |
| 511724.BO | Baid Leasing and Finance Co Ltd | 0.44 | 0.07 | 0.05 |
| 512381.BO | Starteck Finance Ltd | 4.97 | -0.93 | -0.16 |
| 530879.BO | Capital India Finance Ltd | 0.67 | 0.83 | 0.5 |
| 532057.BO | Abhinav Capital Services Ltd | 0.43 | -1.48 | -1.04 |
| 535566.BO | KIFS Financial Services Ltd | 2.12 | 0.01 | 0 |
| 538732.BO | Vibrant Global Capital Ltd | 0.3 | 0.11 | 0.08 |
| HUDCO.NS | Housing and Urban Development Corporation Ltd | 1.58 | 1.59 | 0.63 |
| TFCILTD.NS | Tourism Finance Corporation of India Ltd | 0.52 | 1.45 | 0.96 |
| VIJIFIN.NS | Viji Finance Ltd | 0.35 | 0.03 | 0.03 |
| Low | High | |
| Unlevered beta | 0.02 | 0.06 |
| Relevered beta | 4.93 | 15.82 |
| Adjusted relevered beta | 3.63 | 10.93 |
SREINFRA.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 SREINFRA.NS:
cost_of_equity (73.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.63) + 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.