The WACC of Nucleus Software Exports Ltd (NUCLEUS.NS) is 16.6%.
Range | Selected | |
Cost of equity | 14.7% - 18.6% | 16.65% |
Tax rate | 25.2% - 25.4% | 25.3% |
Cost of debt | 7.5% - 11.1% | 9.3% |
WACC | 14.7% - 18.5% | 16.6% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.94 | 1.15 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 14.7% | 18.6% |
Tax rate | 25.2% | 25.4% |
Debt/Equity ratio | 0 | 0 |
Cost of debt | 7.5% | 11.1% |
After-tax WACC | 14.7% | 18.5% |
Selected WACC | 16.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NUCLEUS.NS | Nucleus Software Exports Ltd | 0 | 1.79 | 1.79 |
532344.BO | SoftSol India Ltd | 0 | 0.57 | 0.57 |
532372.BO | Virinchi Ltd | 1.05 | 1.24 | 0.69 |
533056.BO | Vedavaag Systems Ltd | 0.03 | 1.33 | 1.3 |
AURIONPRO.NS | Aurionpro Solutions Ltd | 0.01 | 0.94 | 0.94 |
INTENTECH.NS | Intense Technologies Ltd | 0 | 1.16 | 1.16 |
ONMOBILE.NS | Onmobile Global Ltd | 0.03 | 1.5 | 1.46 |
SASKEN.NS | Sasken Technologies Ltd | 0 | 0.88 | 0.88 |
SECURKLOUD.NS | Securekloud Technologies Ltd | 1.45 | 0.56 | 0.27 |
SUBEXLTD.NS | Subex Ltd | 0.04 | 1.89 | 1.84 |
Low | High | |
Unlevered beta | 0.91 | 1.22 |
Relevered beta | 0.91 | 1.22 |
Adjusted relevered beta | 0.94 | 1.15 |
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.