GENESYS.NS WACC - Weighted Average Cost of Capital

The WACC of Genesys International Corporation Ltd (GENESYS.NS) is 11.7%.

The Cost of Equity of Genesys International Corporation Ltd (GENESYS.NS) is 12.25%.

The Cost of Debt of Genesys International Corporation Ltd (GENESYS.NS) is 10.80%.

	Range	Selected
Cost of equity	10.40% - 14.10%	12.25%
Tax rate	23.50% - 35.40%	29.45%
Cost of debt	7.90% - 13.70%	10.80%
WACC	9.9% - 13.5%	11.7%

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	0.43	0.67

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.10%

Tax rate	23.50%	35.40%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.90%	13.70%

After-tax WACC	9.9%	13.5%


Selected WACC	11.7%

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 (12.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.43) + 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.