TEXINFRA.NS WACC - Weighted Average Cost of Capital

The WACC of Texmaco Infrastructure & Holdings Ltd (TEXINFRA.NS) is 13.1%.

The Cost of Equity of Texmaco Infrastructure & Holdings Ltd (TEXINFRA.NS) is 13.25%.

The Cost of Debt of Texmaco Infrastructure & Holdings Ltd (TEXINFRA.NS) is 8.95%.

	Range	Selected
Cost of equity	10.50% - 16.00%	13.25%
Tax rate	18.60% - 34.60%	26.60%
Cost of debt	7.90% - 10.00%	8.95%
WACC	10.4% - 15.8%	13.1%

WACC

TEXINFRA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	16.00%

Tax rate	18.60%	34.60%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.90%	10.00%

After-tax WACC	10.4%	15.8%


Selected WACC	13.1%

TEXINFRA.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 TEXINFRA.NS:

cost_of_equity (13.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.