RPSGVENT.NS WACC - Weighted Average Cost of Capital

The WACC of RPSG Ventures Ltd (RPSGVENT.NS) is 13.5%.

The Cost of Equity of RPSG Ventures Ltd (RPSGVENT.NS) is 22.15%.

The Cost of Debt of RPSG Ventures Ltd (RPSGVENT.NS) is 10.30%.

	Range	Selected
Cost of equity	18.80% - 25.50%	22.15%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	10.10% - 10.50%	10.30%
WACC	12.0% - 15.0%	13.5%

WACC

RPSGVENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.43	1.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.80%	25.50%

Tax rate	30.00%	30.00%
Debt/Equity ratio	1.37	1.37
Cost of debt	10.10%	10.50%

After-tax WACC	12.0%	15.0%


Selected WACC	13.5%

RPSGVENT.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 RPSGVENT.NS:

cost_of_equity (22.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.43) + 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.