MAJESCO.NS WACC - Weighted Average Cost of Capital

The WACC of Majesco Ltd (MAJESCO.NS) is 14.9%.

The Cost of Equity of Majesco Ltd (MAJESCO.NS) is 20.10%.

The Cost of Debt of Majesco Ltd (MAJESCO.NS) is 12.85%.

	Range	Selected
Cost of equity	16.90% - 23.30%	20.10%
Tax rate	22.40% - 26.30%	24.35%
Cost of debt	8.60% - 17.10%	12.85%
WACC	11.8% - 18.0%	14.9%

WACC

MAJESCO.NS WACC calculation

Category	Low	High

Long-term bond rate	7.5%	8.0%
Equity market risk premium	6.9%	7.9%
Adjusted beta	1.35	1.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.90%	23.30%

Tax rate	22.40%	26.30%
Debt/Equity ratio	1	1
Cost of debt	8.60%	17.10%

After-tax WACC	11.8%	18.0%


Selected WACC	14.9%

MAJESCO.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 MAJESCO.NS:

cost_of_equity (20.10%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (1.35) + 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.