SECURCRED.NS WACC - Weighted Average Cost of Capital

The WACC of SecUR Credentials Ltd (SECURCRED.NS) is 7.3%.

The Cost of Equity of SecUR Credentials Ltd (SECURCRED.NS) is 11.25%.

The Cost of Debt of SecUR Credentials Ltd (SECURCRED.NS) is 10.45%.

	Range	Selected
Cost of equity	10.00% - 12.50%	11.25%
Tax rate	34.40% - 49.50%	41.95%
Cost of debt	7.00% - 13.90%	10.45%
WACC	6.1% - 8.5%	7.3%

WACC

SECURCRED.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.38	0.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	12.50%

Tax rate	34.40%	49.50%
Debt/Equity ratio	2.63	2.63
Cost of debt	7.00%	13.90%

After-tax WACC	6.1%	8.5%


Selected WACC	7.3%

SECURCRED.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 SECURCRED.NS:

cost_of_equity (11.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.38) + 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.