GSS.NS WACC - Weighted Average Cost of Capital

The WACC of GSS Infotech Ltd (GSS.NS) is 13.8%.

The Cost of Equity of GSS Infotech Ltd (GSS.NS) is 13.85%.

The Cost of Debt of GSS Infotech Ltd (GSS.NS) is 17.40%.

	Range	Selected
Cost of equity	12.70% - 15.00%	13.85%
Tax rate	11.40% - 21.10%	16.25%
Cost of debt	7.90% - 26.90%	17.40%
WACC	12.6% - 15.1%	13.8%

WACC

GSS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.7	0.77

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	15.00%

Tax rate	11.40%	21.10%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.90%	26.90%

After-tax WACC	12.6%	15.1%


Selected WACC	13.8%

GSS.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 GSS.NS:

cost_of_equity (13.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.