SAKSOFT.NS WACC - Weighted Average Cost of Capital

The WACC of Saksoft Ltd (SAKSOFT.NS) is 14.3%.

The Cost of Equity of Saksoft Ltd (SAKSOFT.NS) is 14.40%.

The Cost of Debt of Saksoft Ltd (SAKSOFT.NS) is 7.40%.

	Range	Selected
Cost of equity	10.60% - 18.20%	14.40%
Tax rate	22.20% - 23.30%	22.75%
Cost of debt	7.30% - 7.50%	7.40%
WACC	10.5% - 18.1%	14.3%

WACC

SAKSOFT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.45	1.11

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	18.20%

Tax rate	22.20%	23.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.30%	7.50%

After-tax WACC	10.5%	18.1%


Selected WACC	14.3%

SAKSOFT.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 SAKSOFT.NS:

cost_of_equity (14.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.45) + 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.