MASTEK.NS
Mastek Ltd
Price:  
2,085.20 
INR
Volume:  
95,740.00
India | IT Services
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MASTEK.NS WACC - Weighted Average Cost of Capital

The WACC of Mastek Ltd (MASTEK.NS) is 12.9%.

The Cost of Equity of Mastek Ltd (MASTEK.NS) is 13.50%.
The Cost of Debt of Mastek Ltd (MASTEK.NS) is 7.95%.

Range Selected
Cost of equity 10.00% - 17.00% 13.50%
Tax rate 23.10% - 25.70% 24.40%
Cost of debt 7.60% - 8.30% 7.95%
WACC 9.7% - 16.2% 12.9%
WACC

MASTEK.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.38 0.98
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.00% 17.00%
Tax rate 23.10% 25.70%
Debt/Equity ratio 0.08 0.08
Cost of debt 7.60% 8.30%
After-tax WACC 9.7% 16.2%
Selected WACC 12.9%

MASTEK.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 MASTEK.NS:

cost_of_equity (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.38) + 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.