RSYSTEMS.NS WACC - Weighted Average Cost of Capital
The WACC of R Systems International Ltd (RSYSTEMS.NS) is 13.8%.
| Range | Selected | |
| Cost of equity | 11.4% - 16.7% | 14.05% |
| Tax rate | 17.5% - 22.7% | 20.1% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 11.2% - 16.3% | 13.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.55 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.4% | 16.7% |
| Tax rate | 17.5% | 22.7% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 11.2% | 16.3% |
| Selected WACC | 13.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| RSYSTEMS.NS | R Systems International Ltd | 0.03 | 1.06 | 1.03 |
| 501421.BO | Technvision Ventures Ltd | 0 | -0.25 | -0.25 |
| 538891.BO | Magellanic Cloud Ltd | 0.06 | -0.81 | -0.77 |
| ACCELYA.NS | Accelya Solutions India Ltd | 0.02 | 0.92 | 0.91 |
| CIGNITITEC.NS | Cigniti Technologies Ltd | 0.01 | 0.89 | 0.88 |
| GTL.NS | GTL Ltd | 44.27 | 1.69 | 0.05 |
| INSPIRISYS.NS | Inspirisys Solutions Ltd | 0.21 | 0.58 | 0.5 |
| KELLTONTEC.NS | Kellton Tech Solutions Ltd | 0.14 | 1.17 | 1.05 |
| MASTEK.NS | Mastek Ltd | 0.07 | 1.47 | 1.39 |
| ROLTA.NS | Rolta India Ltd | 250.14 | 0.19 | 0 |
| Low | High | |
| Unlevered beta | 0.32 | 0.89 |
| Relevered beta | 0.33 | 0.91 |
| Adjusted relevered beta | 0.55 | 0.94 |
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 (14.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.