ECLERX.NS WACC - Weighted Average Cost of Capital

The WACC of Eclerx Services Ltd (ECLERX.NS) is 16.7%.

The Cost of Equity of Eclerx Services Ltd (ECLERX.NS) is 16.90%.

The Cost of Debt of Eclerx Services Ltd (ECLERX.NS) is 11.35%.

	Range	Selected
Cost of equity	14.90% - 18.90%	16.90%
Tax rate	24.90% - 25.20%	25.05%
Cost of debt	7.50% - 15.20%	11.35%
WACC	14.6% - 18.7%	16.7%

WACC

ECLERX.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.96	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	18.90%

Tax rate	24.90%	25.20%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.50%	15.20%

After-tax WACC	14.6%	18.7%


Selected WACC	16.7%

ECLERX.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 ECLERX.NS:

cost_of_equity (16.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.96) + 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.