The WACC of Infibeam Avenues Ltd (INFIBEAM.NS) is 17.8%.
Range | Selected | |
Cost of equity | 16.0% - 19.6% | 17.8% |
Tax rate | 20.0% - 24.0% | 22% |
Cost of debt | 7.5% - 26.5% | 17% |
WACC | 16.0% - 19.6% | 17.8% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 1.1 | 1.26 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 16.0% | 19.6% |
Tax rate | 20.0% | 24.0% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 7.5% | 26.5% |
After-tax WACC | 16.0% | 19.6% |
Selected WACC | 17.8% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
INFIBEAM.NS | Infibeam Avenues Ltd | 0 | 1.11 | 1.11 |
540590.BO | Riddhi Corporate Services Ltd | 1.26 | 0.19 | 0.1 |
ALANKIT.NS | Alankit Ltd | 0.11 | 1.53 | 1.41 |
CAMS.NS | Computer Age Management Services Ltd | 0 | 1.52 | 1.51 |
DATAMATICS.NS | Datamatics Global Services Ltd | 0 | 1.71 | 1.71 |
GENESYS.NS | Genesys International Corporation Ltd | 0.05 | 1.74 | 1.69 |
HAPPSTMNDS.NS | Happiest Minds Technologies Ltd | 0.13 | 0.46 | 0.42 |
ONEPOINT.NS | One Point One Solutions Ltd | 0.03 | 1.2 | 1.17 |
VAKRANGEE.NS | Vakrangee Ltd | 0 | 0.43 | 0.43 |
XCHANGING.NS | Xchanging Solutions Ltd | 0 | 1.38 | 1.37 |
Low | High | |
Unlevered beta | 1.14 | 1.39 |
Relevered beta | 1.15 | 1.39 |
Adjusted relevered beta | 1.1 | 1.26 |
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 INFIBEAM.NS:
cost_of_equity (17.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.