GENESYS.NS WACC - Weighted Average Cost of Capital

The WACC of Genesys International Corporation Ltd (GENESYS.NS) is 14.8%.

The Cost of Equity of Genesys International Corporation Ltd (GENESYS.NS) is 14.95%.

The Cost of Debt of Genesys International Corporation Ltd (GENESYS.NS) is 10.65%.

	Range	Selected
Cost of equity	11.40% - 18.50%	14.95%
Tax rate	23.50% - 35.40%	29.45%
Cost of debt	7.60% - 13.70%	10.65%
WACC	11.3% - 18.3%	14.8%

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	0.55	1.14

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	18.50%

Tax rate	23.50%	35.40%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.60%	13.70%

After-tax WACC	11.3%	18.3%


Selected WACC	14.8%

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 (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.