INSPIRISYS.NS WACC - Weighted Average Cost of Capital

The WACC of Inspirisys Solutions Ltd (INSPIRISYS.NS) is 16.0%.

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

The Cost of Debt of Inspirisys Solutions Ltd (INSPIRISYS.NS) is 9.50%.

	Range	Selected
Cost of equity	15.30% - 22.20%	18.75%
Tax rate	22.60% - 37.20%	29.90%
Cost of debt	9.00% - 10.00%	9.50%
WACC	13.4% - 18.6%	16.0%

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	1.02	1.54

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.30%	22.20%

Tax rate	22.60%	37.20%
Debt/Equity ratio	0.29	0.29
Cost of debt	9.00%	10.00%

After-tax WACC	13.4%	18.6%


Selected WACC	16.0%

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 (1.02) + 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.