CEREBRAINT.NS WACC - Weighted Average Cost of Capital

The WACC of Cerebra Integrated Technologies Ltd (CEREBRAINT.NS) is 12.0%.

The Cost of Equity of Cerebra Integrated Technologies Ltd (CEREBRAINT.NS) is 16.60%.

The Cost of Debt of Cerebra Integrated Technologies Ltd (CEREBRAINT.NS) is 11.20%.

	Range	Selected
Cost of equity	13.30% - 19.90%	16.60%
Tax rate	16.70% - 23.00%	19.85%
Cost of debt	7.00% - 15.40%	11.20%
WACC	8.9% - 15.1%	12.0%

WACC

CEREBRAINT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.78	1.3

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	19.90%

Tax rate	16.70%	23.00%
Debt/Equity ratio	1.47	1.47
Cost of debt	7.00%	15.40%

After-tax WACC	8.9%	15.1%


Selected WACC	12.0%

CEREBRAINT.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 CEREBRAINT.NS:

cost_of_equity (16.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.