NUCLEUS.NS
Nucleus Software Exports Ltd
Price:  
1,199.2 
INR
Volume:  
38,345
India | Software

NUCLEUS.NS WACC - Weighted Average Cost of Capital

The WACC of Nucleus Software Exports Ltd (NUCLEUS.NS) is 16.6%.

The Cost of Equity of Nucleus Software Exports Ltd (NUCLEUS.NS) is 16.65%.
The Cost of Debt of Nucleus Software Exports Ltd (NUCLEUS.NS) is 9.3%.

RangeSelected
Cost of equity14.7% - 18.6%16.65%
Tax rate25.2% - 25.4%25.3%
Cost of debt7.5% - 11.1%9.3%
WACC14.7% - 18.5%16.6%
WACC

NUCLEUS.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.941.15
Additional risk adjustments0.0%0.5%
Cost of equity14.7%18.6%
Tax rate25.2%25.4%
Debt/Equity ratio
00
Cost of debt7.5%11.1%
After-tax WACC14.7%18.5%
Selected WACC16.6%

NUCLEUS.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 NUCLEUS.NS:

cost_of_equity (16.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.