INNOVANA.NS WACC - Weighted Average Cost of Capital

The WACC of Innovana Thinklabs Ltd (INNOVANA.NS) is 15.3%.

The Cost of Equity of Innovana Thinklabs Ltd (INNOVANA.NS) is 14.35%.

The Cost of Debt of Innovana Thinklabs Ltd (INNOVANA.NS) is 44.45%.

	Range	Selected
Cost of equity	12.00% - 16.70%	14.35%
Tax rate	23.60% - 27.60%	25.60%
Cost of debt	7.00% - 81.90%	44.45%
WACC	11.6% - 19.1%	15.3%

WACC

INNOVANA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.62	0.94

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	16.70%

Tax rate	23.60%	27.60%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.00%	81.90%

After-tax WACC	11.6%	19.1%


Selected WACC	15.3%

INNOVANA.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 INNOVANA.NS:

cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.