SECURKLOUD.NS WACC - Weighted Average Cost of Capital

The WACC of Securekloud Technologies Ltd (SECURKLOUD.NS) is 10.8%.

The Cost of Equity of Securekloud Technologies Ltd (SECURKLOUD.NS) is 15.35%.

The Cost of Debt of Securekloud Technologies Ltd (SECURKLOUD.NS) is 8.20%.

	Range	Selected
Cost of equity	12.70% - 18.00%	15.35%
Tax rate	0.80% - 3.30%	2.05%
Cost of debt	7.00% - 9.40%	8.20%
WACC	9.1% - 12.5%	10.8%

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	0.7	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	18.00%

Tax rate	0.80%	3.30%
Debt/Equity ratio	1.66	1.66
Cost of debt	7.00%	9.40%

After-tax WACC	9.1%	12.5%


Selected WACC	10.8%

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 (15.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.