ALLSEC.NS WACC - Weighted Average Cost of Capital

The WACC of Allsec Technologies Ltd (ALLSEC.NS) is 14.5%.

The Cost of Equity of Allsec Technologies Ltd (ALLSEC.NS) is 14.80%.

The Cost of Debt of Allsec Technologies Ltd (ALLSEC.NS) is 8.15%.

	Range	Selected
Cost of equity	13.50% - 16.10%	14.80%
Tax rate	23.20% - 24.50%	23.85%
Cost of debt	7.00% - 9.30%	8.15%
WACC	13.2% - 15.8%	14.5%

WACC

ALLSEC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.8	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	16.10%

Tax rate	23.20%	24.50%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.00%	9.30%

After-tax WACC	13.2%	15.8%


Selected WACC	14.5%

ALLSEC.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 ALLSEC.NS:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.