FSC.NS WACC - Weighted Average Cost of Capital

The WACC of Future Supply Chain Solutions Ltd (FSC.NS) is 12.0%.

The Cost of Equity of Future Supply Chain Solutions Ltd (FSC.NS) is 42.30%.

The Cost of Debt of Future Supply Chain Solutions Ltd (FSC.NS) is 16.35%.

	Range	Selected
Cost of equity	28.10% - 56.50%	42.30%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	14.10% - 18.60%	16.35%
WACC	10.2% - 13.8%	12.0%

WACC

FSC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	2.56	5.23

Additional risk adjustments	0.0%	0.5%
Cost of equity	28.10%	56.50%

Tax rate	30.00%	30.00%
Debt/Equity ratio	60.05	60.05
Cost of debt	14.10%	18.60%

After-tax WACC	10.2%	13.8%


Selected WACC	12.0%

FSC.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 FSC.NS:

cost_of_equity (42.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.56) + 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.