COMPINFO.NS WACC - Weighted Average Cost of Capital

The WACC of Compuage Infocom Ltd (COMPINFO.NS) is 8.1%.

The Cost of Equity of Compuage Infocom Ltd (COMPINFO.NS) is 28.70%.

The Cost of Debt of Compuage Infocom Ltd (COMPINFO.NS) is 9.60%.

	Range	Selected
Cost of equity	14.20% - 43.20%	28.70%
Tax rate	14.40% - 24.40%	19.40%
Cost of debt	7.00% - 12.20%	9.60%
WACC	6.2% - 10.1%	8.1%

WACC

COMPINFO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.89	3.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	43.20%

Tax rate	14.40%	24.40%
Debt/Equity ratio	40.28	40.28
Cost of debt	7.00%	12.20%

After-tax WACC	6.2%	10.1%


Selected WACC	8.1%

COMPINFO.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 COMPINFO.NS:

cost_of_equity (28.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.