509040.BO WACC - Weighted Average Cost of Capital
The WACC of Netlink Solutions (India) Ltd (509040.BO) is 11.1%.
| Range | Selected | |
| Cost of equity | 13.9% - 17.6% | 15.75% |
| Tax rate | 10.6% - 14.7% | 12.65% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 10.3% - 12.0% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.84 | 1.04 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.9% | 17.6% |
| Tax rate | 10.6% | 14.7% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 10.3% | 12.0% |
| Selected WACC | 11.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 509040.BO | Netlink Solutions (India) Ltd | 1.12 | 0.38 | 0.19 |
| 512279.BO | N2N Technologies Ltd | 0.03 | -1.9 | -1.84 |
| 523387.BO | Triton Corp Ltd | 0.13 | 0.14 | 0.12 |
| 538734.BO | Ceinsys Tech Ltd | 0 | 0.42 | 0.42 |
| ADROITINFO.NS | Adroit Infotech Ltd | 0.05 | 0.56 | 0.53 |
| CTE.NS | Cambridge Technology Enterprises Ltd | 1.25 | 0.85 | 0.41 |
| HGS.NS | Hinduja Global Solutions Ltd | 0.87 | 1.11 | 0.63 |
| MPHASIS.NS | Mphasis Ltd | 0.05 | 1.73 | 1.67 |
| TRIGYN.NS | Trigyn Technologies Ltd | 0.02 | 0.88 | 0.87 |
| XELPMOC.NS | Xelpmoc Design and Tech Ltd | 0.01 | 1.29 | 1.27 |
| Low | High | |
| Unlevered beta | 0.41 | 0.57 |
| Relevered beta | 0.76 | 1.06 |
| Adjusted relevered beta | 0.84 | 1.04 |
509040.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 509040.BO:
cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.