GENESYS.NS WACC - Weighted Average Cost of Capital

The WACC of Genesys International Corporation Ltd (GENESYS.NS) is 13.8%.

The Cost of Equity of Genesys International Corporation Ltd (GENESYS.NS) is 13.85%.

The Cost of Debt of Genesys International Corporation Ltd (GENESYS.NS) is 12.65%.

	Range	Selected
Cost of equity	10.60% - 17.10%	13.85%
Tax rate	18.20% - 30.00%	24.10%
Cost of debt	7.50% - 17.80%	12.65%
WACC	10.5% - 17.0%	13.8%

WACC

GENESYS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	17.10%

Tax rate	18.20%	30.00%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	17.80%

After-tax WACC	10.5%	17.0%


Selected WACC	13.8%

GENESYS.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 GENESYS.NS:

cost_of_equity (13.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.