EXPLEOSOL.NS
Expleo Solutions Ltd
Price:  
1,333 
INR
Volume:  
30,992
India | IT Services

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%.

RangeSelected
Cost of equity14.0% - 20.7%17.35%
Tax rate25.6% - 25.9%25.75%
Cost of debt7.5% - 13.2%10.35%
WACC13.9% - 20.6%17.3%
WACC

EXPLEOSOL.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.861.38
Additional risk adjustments0.0%0.5%
Cost of equity14.0%20.7%
Tax rate25.6%25.9%
Debt/Equity ratio
0.010.01
Cost of debt7.5%13.2%
After-tax WACC13.9%20.6%
Selected WACC17.3%

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.