505502.BO
PS IT Infrastructure & Services Ltd
Price:  
0.88 
INR
Volume:  
369,579.00
India | Electronic Equipment, Instruments & Components
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505502.BO WACC - Weighted Average Cost of Capital

The WACC of PS IT Infrastructure & Services Ltd (505502.BO) is 11.2%.

The Cost of Equity of PS IT Infrastructure & Services Ltd (505502.BO) is 16.45%.
The Cost of Debt of PS IT Infrastructure & Services Ltd (505502.BO) is 5.00%.

Range Selected
Cost of equity 14.10% - 18.80% 16.45%
Tax rate 15.10% - 25.20% 20.15%
Cost of debt 5.00% - 5.00% 5.00%
WACC 10.0% - 12.5% 11.2%
WACC

505502.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.87 1.18
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.10% 18.80%
Tax rate 15.10% 25.20%
Debt/Equity ratio 0.73 0.73
Cost of debt 5.00% 5.00%
After-tax WACC 10.0% 12.5%
Selected WACC 11.2%

505502.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 505502.BO:

cost_of_equity (16.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.