ADROITINFO.NS WACC - Weighted Average Cost of Capital

The WACC of Adroit Infotech Ltd (ADROITINFO.NS) is 12.9%.

The Cost of Equity of Adroit Infotech Ltd (ADROITINFO.NS) is 13.05%.

The Cost of Debt of Adroit Infotech Ltd (ADROITINFO.NS) is 11.65%.

	Range	Selected
Cost of equity	11.90% - 14.20%	13.05%
Tax rate	2.20% - 10.20%	6.20%
Cost of debt	7.60% - 15.70%	11.65%
WACC	11.7% - 14.2%	12.9%

WACC

ADROITINFO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	14.20%

Tax rate	2.20%	10.20%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.60%	15.70%

After-tax WACC	11.7%	14.2%


Selected WACC	12.9%

ADROITINFO.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 ADROITINFO.NS:

cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.