517119.BO
PCS Technology Ltd
Price:  
27.44 
INR
Volume:  
3,497.00
India | Technology Hardware, Storage & Peripherals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

517119.BO WACC - Weighted Average Cost of Capital

The WACC of PCS Technology Ltd (517119.BO) is 14.2%.

The Cost of Equity of PCS Technology Ltd (517119.BO) is 14.95%.
The Cost of Debt of PCS Technology Ltd (517119.BO) is 5.00%.

Range Selected
Cost of equity 12.80% - 17.10% 14.95%
Tax rate 27.30% - 35.60% 31.45%
Cost of debt 5.00% - 5.00% 5.00%
WACC 12.2% - 16.2% 14.2%
WACC

517119.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.71 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 17.10%
Tax rate 27.30% 35.60%
Debt/Equity ratio 0.07 0.07
Cost of debt 5.00% 5.00%
After-tax WACC 12.2% 16.2%
Selected WACC 14.2%

517119.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 517119.BO:

cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.71) + 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.