MINDTECK.NS WACC - Weighted Average Cost of Capital
The WACC of Mindteck (India) Ltd (MINDTECK.NS) is 13.7%.
| Range | Selected | |
| Cost of equity | 11.9% - 15.7% | 13.8% |
| Tax rate | 18.7% - 19.3% | 19% |
| Cost of debt | 7.5% - 8.1% | 7.8% |
| WACC | 11.8% - 15.6% | 13.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.6 | 0.84 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.9% | 15.7% |
| Tax rate | 18.7% | 19.3% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.5% | 8.1% |
| After-tax WACC | 11.8% | 15.6% |
| Selected WACC | 13.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MINDTECK.NS | Mindteck (India) Ltd | 0.01 | 2.16 | 2.14 |
| 501421.BO | Technvision Ventures Ltd | 0 | -0.25 | -0.25 |
| 538891.BO | Magellanic Cloud Ltd | 0.06 | -0.81 | -0.78 |
| ADSL.NS | Allied Digital Services Ltd | 0.07 | 1.27 | 1.2 |
| DSSL.NS | Dynacons Systems and Solutions Ltd | 0.1 | 1.78 | 1.64 |
| EXPLEOSOL.NS | Expleo Solutions Ltd | 0.01 | 1.08 | 1.07 |
| GSS.NS | GSS Infotech Ltd | 0.01 | 0.55 | 0.54 |
| GTL.NS | GTL Ltd | 35.04 | 1.38 | 0.05 |
| SAKSOFT.NS | Saksoft Ltd | 0.02 | 1.74 | 1.71 |
| SILVERTUC.NS | Silver Touch Technologies Ltd | 0.01 | 0.51 | 0.51 |
| TERASOFT.NS | Tera Software Ltd | 0.05 | 0.26 | 0.25 |
| Low | High | |
| Unlevered beta | 0.51 | 1.07 |
| Relevered beta | 0.4 | 0.76 |
| Adjusted relevered beta | 0.6 | 0.84 |
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 (13.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.