539620.BO WACC - Weighted Average Cost of Capital

The WACC of A Infrastructure Ltd (539620.BO) is 16.1%.

The Cost of Equity of A Infrastructure Ltd (539620.BO) is 20.55%.

The Cost of Debt of A Infrastructure Ltd (539620.BO) is 14.80%.

	Range	Selected
Cost of equity	18.90% - 22.20%	20.55%
Tax rate	25.40% - 26.70%	26.05%
Cost of debt	11.00% - 18.60%	14.80%
WACC	13.9% - 18.2%	16.1%

WACC

539620.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.45	1.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.90%	22.20%

Tax rate	25.40%	26.70%
Debt/Equity ratio	0.88	0.88
Cost of debt	11.00%	18.60%

After-tax WACC	13.9%	18.2%


Selected WACC	16.1%

539620.BO'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 539620.BO:

cost_of_equity (20.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.45) + 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.