XPROINDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Xpro India Ltd (XPROINDIA.NS) is 13.8%.

The Cost of Equity of Xpro India Ltd (XPROINDIA.NS) is 13.95%.

The Cost of Debt of Xpro India Ltd (XPROINDIA.NS) is 8.85%.

	Range	Selected
Cost of equity	12.40% - 15.50%	13.95%
Tax rate	18.30% - 24.90%	21.60%
Cost of debt	7.50% - 10.20%	8.85%
WACC	12.3% - 15.4%	13.8%

WACC

XPROINDIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.82

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	15.50%

Tax rate	18.30%	24.90%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	10.20%

After-tax WACC	12.3%	15.4%


Selected WACC	13.8%

XPROINDIA.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 XPROINDIA.NS:

cost_of_equity (13.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.