VISESHINFO.NS WACC - Weighted Average Cost of Capital

The WACC of MPS Infotecnics Ltd (VISESHINFO.NS) is 10.0%.

The Cost of Equity of MPS Infotecnics Ltd (VISESHINFO.NS) is 11.05%.

The Cost of Debt of MPS Infotecnics Ltd (VISESHINFO.NS) is 4.25%.

	Range	Selected
Cost of equity	10.00% - 12.10%	11.05%
Tax rate	10.70% - 12.00%	11.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	9.1% - 10.9%	10.0%

WACC

VISESHINFO.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	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.00%	12.10%

Tax rate	10.70%	12.00%
Debt/Equity ratio	0.18	0.18
Cost of debt	4.00%	4.50%

After-tax WACC	9.1%	10.9%


Selected WACC	10.0%

VISESHINFO.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 VISESHINFO.NS:

cost_of_equity (11.05%) = 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.