FSL.NS WACC - Weighted Average Cost of Capital
The WACC of Firstsource Solutions Ltd (FSL.NS) is 14.8%.
| Range | Selected | |
| Cost of equity | 12.8% - 18.4% | 15.6% |
| Tax rate | 16.9% - 17.6% | 17.25% |
| Cost of debt | 6.7% - 8.1% | 7.4% |
| WACC | 12.2% - 17.4% | 14.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.72 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.8% | 18.4% |
| Tax rate | 16.9% | 17.6% |
| Debt/Equity ratio | 0.1 | 0.1 |
| Cost of debt | 6.7% | 8.1% |
| After-tax WACC | 12.2% | 17.4% |
| Selected WACC | 14.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| FSL.NS | Firstsource Solutions Ltd | 0.1 | 1.2 | 1.11 |
| 002987.SZ | Northking Information Technology Co Ltd | 0 | 1.45 | 1.44 |
| 092130.KQ | E Credible Co Ltd | 0 | 0.19 | 0.19 |
| 536.HK | Tradelink Electronic Commerce Ltd | 0 | 0.13 | 0.13 |
| 540590.BO | Riddhi Corporate Services Ltd | 1.26 | 0.19 | 0.09 |
| AIRAN.NS | Airan Ltd | 0.01 | 1.12 | 1.11 |
| ECLERX.NS | Eclerx Services Ltd | 0.02 | 1.62 | 1.6 |
| HGS.NS | Hinduja Global Solutions Ltd | 0.77 | 1.25 | 0.77 |
| HOVS.NS | HOV Services Ltd | 0.04 | 1.82 | 1.75 |
| SPT.AX | Splitit Ltd | 2.61 | 0.63 | 0.2 |
| Low | High | |
| Unlevered beta | 0.54 | 1.11 |
| Relevered beta | 0.58 | 1.19 |
| Adjusted relevered beta | 0.72 | 1.13 |
FSL.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 FSL.NS:
cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.