538734.BO WACC - Weighted Average Cost of Capital
The WACC of Ceinsys Tech Ltd (538734.BO) is 11.5%.
| Range | Selected | |
| Cost of equity | 10.1% - 12.9% | 11.5% |
| Tax rate | 24.0% - 28.5% | 26.25% |
| Cost of debt | 7.5% - 11.2% | 9.35% |
| WACC | 10.1% - 12.9% | 11.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.39 | 0.55 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.1% | 12.9% |
| Tax rate | 24.0% | 28.5% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 11.2% |
| After-tax WACC | 10.1% | 12.9% |
| Selected WACC | 11.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 538734.BO | Ceinsys Tech Ltd | 0 | 0.42 | 0.42 |
| 501421.BO | Technvision Ventures Ltd | 0.01 | -0.25 | -0.25 |
| 523387.BO | Triton Corp Ltd | 0.13 | 0.14 | 0.12 |
| 538891.BO | Magellanic Cloud Ltd | 0.06 | -0.81 | -0.78 |
| ADROITINFO.NS | Adroit Infotech Ltd | 0.05 | 0.73 | 0.7 |
| CTE.NS | Cambridge Technology Enterprises Ltd | 1.24 | 1.34 | 0.71 |
| GTL.NS | GTL Ltd | 41.06 | 1.57 | 0.05 |
| TERASOFT.NS | Tera Software Ltd | 0.1 | 0.28 | 0.26 |
| XELPMOC.NS | Xelpmoc Design and Tech Ltd | 0.01 | 1.33 | 1.32 |
| Low | High | |
| Unlevered beta | 0.15 | 0.39 |
| Relevered beta | 0.09 | 0.33 |
| Adjusted relevered beta | 0.39 | 0.55 |
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 (11.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.