EXPLEOSOL.NS WACC - Weighted Average Cost of Capital

The WACC of Expleo Solutions Ltd (EXPLEOSOL.NS) is 16.7%.

The Cost of Equity of Expleo Solutions Ltd (EXPLEOSOL.NS) is 17.00%.

The Cost of Debt of Expleo Solutions Ltd (EXPLEOSOL.NS) is 7.85%.

	Range	Selected
Cost of equity	15.30% - 18.70%	17.00%
Tax rate	25.60% - 25.90%	25.75%
Cost of debt	7.50% - 8.20%	7.85%
WACC	15.1% - 18.3%	16.7%

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	1.02	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.30%	18.70%

Tax rate	25.60%	25.90%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	8.20%

After-tax WACC	15.1%	18.3%


Selected WACC	16.7%

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 (17.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.02) + 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.