531489.BO
CG VAK Software and Exports Ltd
Price:  
266.7 
INR
Volume:  
3,424
India | Software

531489.BO WACC - Weighted Average Cost of Capital

The WACC of CG VAK Software and Exports Ltd (531489.BO) is 14.8%.

The Cost of Equity of CG VAK Software and Exports Ltd (531489.BO) is 14.95%.
The Cost of Debt of CG VAK Software and Exports Ltd (531489.BO) is 10.3%.

RangeSelected
Cost of equity12.9% - 17.0%14.95%
Tax rate25.5% - 25.7%25.6%
Cost of debt7.5% - 13.1%10.3%
WACC12.7% - 16.8%14.8%
WACC

531489.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.720.98
Additional risk adjustments0.0%0.5%
Cost of equity12.9%17.0%
Tax rate25.5%25.7%
Debt/Equity ratio
0.020.02
Cost of debt7.5%13.1%
After-tax WACC12.7%16.8%
Selected WACC14.8%

531489.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 531489.BO:

cost_of_equity (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.