517119.BO
PCS Technology Ltd
Price:  
25.66 
INR
Volume:  
21,120.00
India | Technology Hardware, Storage & Peripherals
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517119.BO WACC - Weighted Average Cost of Capital

The WACC of PCS Technology Ltd (517119.BO) is 13.9%.

The Cost of Equity of PCS Technology Ltd (517119.BO) is 14.65%.
The Cost of Debt of PCS Technology Ltd (517119.BO) is 5.00%.

Range Selected
Cost of equity 12.40% - 16.90% 14.65%
Tax rate 22.80% - 34.00% 28.40%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.8% - 16.0% 13.9%
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 0.67 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.40% 16.90%
Tax rate 22.80% 34.00%
Debt/Equity ratio 0.07 0.07
Cost of debt 5.00% 5.00%
After-tax WACC 11.8% 16.0%
Selected WACC 13.9%

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 (14.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.