EXPLEOSOL.NS WACC - Weighted Average Cost of Capital
The WACC of Expleo Solutions Ltd (EXPLEOSOL.NS) is 19.0%.
| Range | Selected | |
| Cost of equity | 17.7% - 20.8% | 19.25% |
| Tax rate | 25.7% - 26.1% | 25.9% |
| Cost of debt | 5.0% - 7.5% | 6.25% |
| WACC | 17.5% - 20.5% | 19.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.31 | 1.39 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.7% | 20.8% |
| Tax rate | 25.7% | 26.1% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 5.0% | 7.5% |
| After-tax WACC | 17.5% | 20.5% |
| Selected WACC | 19.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| EXPLEOSOL.NS | Expleo Solutions Ltd | 0.02 | 1.03 | 1.02 |
| 538891.BO | Magellanic Cloud Ltd | 0.07 | -0.81 | -0.77 |
| 538922.BO | COSYN Ltd | 0.03 | 1.27 | 1.24 |
| ADSL.NS | Allied Digital Services Ltd | 0.07 | 1.53 | 1.45 |
| CYBERTECH.NS | Cybertech Systems and Software Ltd | 0.02 | 1.71 | 1.69 |
| DSSL.NS | Dynacons Systems and Solutions Ltd | 0.03 | 1.52 | 1.49 |
| GOLDTECH.NS | Goldstone Technologies Ltd | 0.08 | 2 | 1.9 |
| MINDTECK.NS | Mindteck (India) Ltd | 0 | 2.03 | 2.03 |
| ONWARDTEC.NS | Onward Technologies Ltd | 0.05 | 1.48 | 1.43 |
| SAKSOFT.NS | Saksoft Ltd | 0.01 | 1.68 | 1.66 |
| Low | High | |
| Unlevered beta | 1.44 | 1.56 |
| Relevered beta | 1.46 | 1.58 |
| Adjusted relevered beta | 1.31 | 1.39 |
EXPLEOSOL.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 EXPLEOSOL.NS:
cost_of_equity (19.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.31) + 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.