CYBERTECH.NS WACC - Weighted Average Cost of Capital

The WACC of Cybertech Systems and Software Ltd (CYBERTECH.NS) is 14.1%.

The Cost of Equity of Cybertech Systems and Software Ltd (CYBERTECH.NS) is 14.25%.

The Cost of Debt of Cybertech Systems and Software Ltd (CYBERTECH.NS) is 10.95%.

	Range	Selected
Cost of equity	12.70% - 15.80%	14.25%
Tax rate	24.60% - 26.00%	25.30%
Cost of debt	7.50% - 14.40%	10.95%
WACC	12.6% - 15.7%	14.1%

WACC

CYBERTECH.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.7	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	15.80%

Tax rate	24.60%	26.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	14.40%

After-tax WACC	12.6%	15.7%


Selected WACC	14.1%

CYBERTECH.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 CYBERTECH.NS:

cost_of_equity (14.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.