MINDTECK.NS WACC - Weighted Average Cost of Capital
The WACC of Mindteck (India) Ltd (MINDTECK.NS) is 15.4%.
| Range | Selected | |
| Cost of equity | 10.8% - 20.1% | 15.45% |
| Tax rate | 16.1% - 19.2% | 17.65% |
| Cost of debt | 5.3% - 7.5% | 6.4% |
| WACC | 10.8% - 20.0% | 15.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.47 | 1.31 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.8% | 20.1% |
| Tax rate | 16.1% | 19.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 5.3% | 7.5% |
| After-tax WACC | 10.8% | 20.0% |
| Selected WACC | 15.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MINDTECK.NS | Mindteck (India) Ltd | 0 | 2.06 | 2.06 |
| 538891.BO | Magellanic Cloud Ltd | 0.06 | -0.81 | -0.77 |
| ADSL.NS | Allied Digital Services Ltd | 0.07 | 1.53 | 1.46 |
| DSSL.NS | Dynacons Systems and Solutions Ltd | 0.02 | 1.53 | 1.5 |
| GSS.NS | GSS Infotech Ltd | 0.12 | 0.11 | 0.1 |
| GTL.NS | GTL Ltd | 44.27 | 1.69 | 0.05 |
| ONWARDTEC.NS | Onward Technologies Ltd | 0.04 | 1.52 | 1.47 |
| SAKSOFT.NS | Saksoft Ltd | 0.01 | 1.64 | 1.62 |
| SILVERTUC.NS | Silver Touch Technologies Ltd | 0.01 | 0.29 | 0.28 |
| TERASOFT.NS | Tera Software Ltd | 0.1 | -0.04 | -0.04 |
| Low | High | |
| Unlevered beta | 0.21 | 1.46 |
| Relevered beta | 0.21 | 1.46 |
| Adjusted relevered beta | 0.47 | 1.31 |
MINDTECK.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 MINDTECK.NS:
cost_of_equity (15.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.