538734.BO WACC - Weighted Average Cost of Capital

The WACC of Ceinsys Tech Ltd (538734.BO) is 12.0%.

The Cost of Equity of Ceinsys Tech Ltd (538734.BO) is 12.10%.

The Cost of Debt of Ceinsys Tech Ltd (538734.BO) is 9.15%.

	Range	Selected
Cost of equity	10.40% - 13.80%	12.10%
Tax rate	24.90% - 29.40%	27.15%
Cost of debt	7.50% - 10.80%	9.15%
WACC	10.3% - 13.7%	12.0%

WACC

538734.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.43	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	13.80%

Tax rate	24.90%	29.40%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	10.80%

After-tax WACC	10.3%	13.7%


Selected WACC	12.0%

538734.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 538734.BO:

cost_of_equity (12.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.