XPROINDIA.NS WACC - Weighted Average Cost of Capital

The WACC of Xpro India Ltd (XPROINDIA.NS) is 13.4%.

The Cost of Equity of Xpro India Ltd (XPROINDIA.NS) is 14.30%.

The Cost of Debt of Xpro India Ltd (XPROINDIA.NS) is 9.55%.

	Range	Selected
Cost of equity	12.50% - 16.10%	14.30%
Tax rate	25.60% - 27.10%	26.35%
Cost of debt	7.90% - 11.20%	9.55%
WACC	11.7% - 15.2%	13.4%

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	0.68	0.89

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	16.10%

Tax rate	25.60%	27.10%
Debt/Equity ratio	0.14	0.14
Cost of debt	7.90%	11.20%

After-tax WACC	11.7%	15.2%


Selected WACC	13.4%

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 (14.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.