EXPLEOSOL.NS WACC - Weighted Average Cost of Capital

The WACC of Expleo Solutions Ltd (EXPLEOSOL.NS) is 17.3%.

The Cost of Equity of Expleo Solutions Ltd (EXPLEOSOL.NS) is 17.35%.

The Cost of Debt of Expleo Solutions Ltd (EXPLEOSOL.NS) is 10.35%.

	Range	Selected
Cost of equity	14.00% - 20.70%	17.35%
Tax rate	25.60% - 25.90%	25.75%
Cost of debt	7.50% - 13.20%	10.35%
WACC	13.9% - 20.6%	17.3%

WACC

EXPLEOSOL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.86	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	20.70%

Tax rate	25.60%	25.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	13.20%

After-tax WACC	13.9%	20.6%


Selected WACC	17.3%

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 (17.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.