UNITY.NS WACC - Weighted Average Cost of Capital

The WACC of Unity Infraprojects Ltd (UNITY.NS) is 7.8%.

The Cost of Equity of Unity Infraprojects Ltd (UNITY.NS) is 274.50%.

The Cost of Debt of Unity Infraprojects Ltd (UNITY.NS) is 7.60%.

	Range	Selected
Cost of equity	81.80% - 467.20%	274.50%
Tax rate	1.60% - 11.10%	6.35%
Cost of debt	7.60% - 7.60%	7.60%
WACC	7.6% - 8.0%	7.8%

WACC

UNITY.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	9.02	49.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	81.80%	467.20%

Tax rate	1.60%	11.10%
Debt/Equity ratio	370.79	370.79
Cost of debt	7.60%	7.60%

After-tax WACC	7.6%	8.0%


Selected WACC	7.8%

UNITY.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 UNITY.NS:

cost_of_equity (274.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (9.02) + 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.