INSPIRISYS.NS WACC - Weighted Average Cost of Capital

The WACC of Inspirisys Solutions Ltd (INSPIRISYS.NS) is 16.4%.

The Cost of Equity of Inspirisys Solutions Ltd (INSPIRISYS.NS) is 18.75%.

The Cost of Debt of Inspirisys Solutions Ltd (INSPIRISYS.NS) is 8.50%.

	Range	Selected
Cost of equity	16.60% - 20.90%	18.75%
Tax rate	14.60% - 16.90%	15.75%
Cost of debt	7.80% - 9.20%	8.50%
WACC	14.5% - 18.2%	16.4%

WACC

INSPIRISYS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.17	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.60%	20.90%

Tax rate	14.60%	16.90%
Debt/Equity ratio	0.26	0.26
Cost of debt	7.80%	9.20%

After-tax WACC	14.5%	18.2%


Selected WACC	16.4%

INSPIRISYS.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 INSPIRISYS.NS:

cost_of_equity (18.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.17) + 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.