SECURKLOUD.NS WACC - Weighted Average Cost of Capital

The WACC of Securekloud Technologies Ltd (SECURKLOUD.NS) is 12.1%.

The Cost of Equity of Securekloud Technologies Ltd (SECURKLOUD.NS) is 17.40%.

The Cost of Debt of Securekloud Technologies Ltd (SECURKLOUD.NS) is 8.35%.

	Range	Selected
Cost of equity	15.00% - 19.80%	17.40%
Tax rate	0.70% - 3.20%	1.95%
Cost of debt	7.00% - 9.70%	8.35%
WACC	10.4% - 13.8%	12.1%

WACC

SECURKLOUD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.98	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.00%	19.80%

Tax rate	0.70%	3.20%
Debt/Equity ratio	1.33	1.33
Cost of debt	7.00%	9.70%

After-tax WACC	10.4%	13.8%


Selected WACC	12.1%

SECURKLOUD.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 SECURKLOUD.NS:

cost_of_equity (17.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.98) + 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.