DEVIT.NS WACC - Weighted Average Cost of Capital

The WACC of DEV Information Technology Ltd (DEVIT.NS) is 15.2%.

The Cost of Equity of DEV Information Technology Ltd (DEVIT.NS) is 15.80%.

The Cost of Debt of DEV Information Technology Ltd (DEVIT.NS) is 11.35%.

	Range	Selected
Cost of equity	14.10% - 17.50%	15.80%
Tax rate	22.40% - 29.70%	26.05%
Cost of debt	7.80% - 14.90%	11.35%
WACC	13.5% - 17.0%	15.2%

WACC

DEVIT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	17.50%

Tax rate	22.40%	29.70%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.80%	14.90%

After-tax WACC	13.5%	17.0%


Selected WACC	15.2%

DEVIT.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 DEVIT.NS:

cost_of_equity (15.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.