DSSL.NS WACC - Weighted Average Cost of Capital

The WACC of Dynacons Systems and Solutions Ltd (DSSL.NS) is 16.5%.

The Cost of Equity of Dynacons Systems and Solutions Ltd (DSSL.NS) is 17.00%.

The Cost of Debt of Dynacons Systems and Solutions Ltd (DSSL.NS) is 14.80%.

	Range	Selected
Cost of equity	14.30% - 19.70%	17.00%
Tax rate	25.40% - 25.40%	25.40%
Cost of debt	7.80% - 21.80%	14.80%
WACC	13.5% - 19.4%	16.5%

WACC

DSSL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.9	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	19.70%

Tax rate	25.40%	25.40%
Debt/Equity ratio	0.1	0.1
Cost of debt	7.80%	21.80%

After-tax WACC	13.5%	19.4%


Selected WACC	16.5%

DSSL.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 DSSL.NS:

cost_of_equity (17.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.