MINDTECK.NS WACC - Weighted Average Cost of Capital

The WACC of Mindteck (India) Ltd (MINDTECK.NS) is 15.3%.

The Cost of Equity of Mindteck (India) Ltd (MINDTECK.NS) is 15.30%.

The Cost of Debt of Mindteck (India) Ltd (MINDTECK.NS) is 6.40%.

	Range	Selected
Cost of equity	10.70% - 19.90%	15.30%
Tax rate	16.10% - 19.20%	17.65%
Cost of debt	5.30% - 7.50%	6.40%
WACC	10.7% - 19.8%	15.3%

WACC

MINDTECK.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.46	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	19.90%

Tax rate	16.10%	19.20%
Debt/Equity ratio	0	0
Cost of debt	5.30%	7.50%

After-tax WACC	10.7%	19.8%


Selected WACC	15.3%

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 (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.