COMPINFO.NS
Compuage Infocom Ltd
Price:  
1.98 
INR
Volume:  
13,513
India | Electronic Equipment, Instruments & Components

COMPINFO.NS WACC - Weighted Average Cost of Capital

The WACC of Compuage Infocom Ltd (COMPINFO.NS) is 8.0%.

The Cost of Equity of Compuage Infocom Ltd (COMPINFO.NS) is 22.5%.
The Cost of Debt of Compuage Infocom Ltd (COMPINFO.NS) is 9.6%.

RangeSelected
Cost of equity11.9% - 33.1%22.5%
Tax rate14.4% - 24.4%19.4%
Cost of debt7.0% - 12.2%9.6%
WACC6.1% - 9.8%8.0%
WACC

COMPINFO.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.612.71
Additional risk adjustments0.0%0.5%
Cost of equity11.9%33.1%
Tax rate14.4%24.4%
Debt/Equity ratio
38.6538.65
Cost of debt7.0%12.2%
After-tax WACC6.1%9.8%
Selected WACC8.0%

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 (22.50%) = 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.