VISESHINFO.NS WACC - Weighted Average Cost of Capital

The WACC of MPS Infotecnics Ltd (VISESHINFO.NS) is 10.1%.

The Cost of Equity of MPS Infotecnics Ltd (VISESHINFO.NS) is 11.15%.

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

	Range	Selected
Cost of equity	10.10% - 12.20%	11.15%
Tax rate	10.70% - 12.00%	11.35%
Cost of debt	4.00% - 4.50%	4.25%
WACC	9.2% - 11.0%	10.1%

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	0.39	0.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.10%	12.20%

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

After-tax WACC	9.2%	11.0%


Selected WACC	10.1%

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 (11.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.39) + 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.