INSPIRISYS.NS WACC - Weighted Average Cost of Capital

The WACC of Inspirisys Solutions Ltd (INSPIRISYS.NS) is 15.8%.

The Cost of Equity of Inspirisys Solutions Ltd (INSPIRISYS.NS) is 17.50%.

The Cost of Debt of Inspirisys Solutions Ltd (INSPIRISYS.NS) is 9.25%.

	Range	Selected
Cost of equity	14.70% - 20.30%	17.50%
Tax rate	17.90% - 21.80%	19.85%
Cost of debt	8.60% - 9.90%	9.25%
WACC	13.4% - 18.2%	15.8%

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	0.94	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.70%	20.30%

Tax rate	17.90%	21.80%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.60%	9.90%

After-tax WACC	13.4%	18.2%


Selected WACC	15.8%

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 (17.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.