HITECHCORP.NS WACC - Weighted Average Cost of Capital

The WACC of Hitech Corporation Ltd (HITECHCORP.NS) is 16.7%.

The Cost of Equity of Hitech Corporation Ltd (HITECHCORP.NS) is 18.65%.

The Cost of Debt of Hitech Corporation Ltd (HITECHCORP.NS) is 14.35%.

	Range	Selected
Cost of equity	17.20% - 20.10%	18.65%
Tax rate	24.30% - 25.00%	24.65%
Cost of debt	12.10% - 16.60%	14.35%
WACC	15.1% - 18.2%	16.7%

WACC

HITECHCORP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.24	1.32

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.20%	20.10%

Tax rate	24.30%	25.00%
Debt/Equity ratio	0.34	0.34
Cost of debt	12.10%	16.60%

After-tax WACC	15.1%	18.2%


Selected WACC	16.7%

HITECHCORP.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 HITECHCORP.NS:

cost_of_equity (18.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.24) + 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.