535667.BO WACC - Weighted Average Cost of Capital

The WACC of India Finsec Ltd (535667.BO) is 10.4%.

The Cost of Equity of India Finsec Ltd (535667.BO) is 12.60%.

The Cost of Debt of India Finsec Ltd (535667.BO) is 7.50%.

	Range	Selected
Cost of equity	11.40% - 13.80%	12.60%
Tax rate	24.70% - 26.20%	25.45%
Cost of debt	7.50% - 7.50%	7.50%
WACC	9.6% - 11.3%	10.4%

WACC

535667.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.55	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	13.80%

Tax rate	24.70%	26.20%
Debt/Equity ratio	0.45	0.45
Cost of debt	7.50%	7.50%

After-tax WACC	9.6%	11.3%


Selected WACC	10.4%

535667.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 535667.BO:

cost_of_equity (12.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.