ACCELYA.NS WACC - Weighted Average Cost of Capital

The WACC of Accelya Solutions India Ltd (ACCELYA.NS) is 14.2%.

The Cost of Equity of Accelya Solutions India Ltd (ACCELYA.NS) is 14.30%.

The Cost of Debt of Accelya Solutions India Ltd (ACCELYA.NS) is 8.60%.

	Range	Selected
Cost of equity	11.60% - 17.00%	14.30%
Tax rate	26.60% - 27.30%	26.95%
Cost of debt	7.50% - 9.70%	8.60%
WACC	11.5% - 16.9%	14.2%

WACC

ACCELYA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.57	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	17.00%

Tax rate	26.60%	27.30%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	9.70%

After-tax WACC	11.5%	16.9%


Selected WACC	14.2%

ACCELYA.NS'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 ACCELYA.NS:

cost_of_equity (14.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.