RSYSTEMS.NS WACC - Weighted Average Cost of Capital

The WACC of R Systems International Ltd (RSYSTEMS.NS) is 13.9%.

The Cost of Equity of R Systems International Ltd (RSYSTEMS.NS) is 14.15%.

The Cost of Debt of R Systems International Ltd (RSYSTEMS.NS) is 5.75%.

	Range	Selected
Cost of equity	11.50% - 16.80%	14.15%
Tax rate	17.50% - 22.70%	20.10%
Cost of debt	4.00% - 7.50%	5.75%
WACC	11.3% - 16.4%	13.9%

WACC

RSYSTEMS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.56	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	16.80%

Tax rate	17.50%	22.70%
Debt/Equity ratio	0.03	0.03
Cost of debt	4.00%	7.50%

After-tax WACC	11.3%	16.4%


Selected WACC	13.9%

RSYSTEMS.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 RSYSTEMS.NS:

cost_of_equity (14.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.