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    Infosys WACC

    Uploaded by

    sagar Samantara

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Infosys WACC

    Uploaded by

    sagar Samantara
    17 views1 page

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    17 views1 page

    Infosys WACC

    Uploaded by

    sagar Samantara

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Infosys Ltd

    Weighted Average Cost of Capital

    All figures are in INR unless stated otherwise


    Peer Comparison
    Debt/ Debt/ Levered Unlevered
    1
    Name of the Company Country Total Debt Total Equity Tax Rate Equity Capital Beta Beta
    TCS India 8021 1380372.59 30.00% 9.0% 0.6% 0.844 0.907
    Infosys India 8359 622183.21 30.00% 9.0% 1.3% 1.00 1.065
    HCL Technologies India 5756 390076.09 30.00% 8.0% 1.5% 0.932 0.988
    Wipro India 16464.9 257315.63 30.00% 22.0% 6.0% 1.35 1.504
    LTIMindtree India 2070.6 150804.23 30.00% 10.0% 1.4% 1.14 1.21
    Tech Mahindra India 2536.7 134019.52 30.00% 10.0% 1.9% 0.88 0.95
    Average 30.00% 11.3% 2.1% 1.025 1.104
    median 30.00% 9.5% 1.4% 0.967 1.026

    Cost of Debt Cost of Equity


    Pre-tax Cost of Debt 5.6% Risk Free Rate 6.97%
    Tax Rate 30.00% Equity Risk Premium 9.80%
    Post-Tax Cost of Debt 3.94% Levered Beta 1.04
    Cost of Equity 17.18%

    Capital Structure Levered Beta


    Current Target Comps Median Unlevered Beta 1.026
    Total Debt 8359 1.33% 2.10% Target Debt/Equity 2.14%
    Market Capitalisation 622183.2 98.67% 97.90% Tax Rate 30.00%
    630542.2 100.00% 100.00% Levered Beta 1.04

    Debt/Equity 1.34% 2.14% Weighted Average Cost of Capital


    Cost of Equity 17.18%
    Equity Weight 97.90%

    Cost of Debt 3.94%


    Debt Weight 2.10%
    WACC 16.90%

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