506128.BO WACC - Weighted Average Cost of Capital
The WACC of Parnax Lab Ltd (506128.BO) is 12.9%.
| Range | Selected | |
| Cost of equity | 16.1% - 19.2% | 17.65% |
| Tax rate | 31.5% - 38.9% | 35.2% |
| Cost of debt | 8.6% - 8.9% | 8.75% |
| WACC | 12.1% - 13.8% | 12.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.11 | 1.21 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 16.1% | 19.2% |
| Tax rate | 31.5% | 38.9% |
| Debt/Equity ratio | 0.65 | 0.65 |
| Cost of debt | 8.6% | 8.9% |
| After-tax WACC | 12.1% | 13.8% |
| Selected WACC | 12.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 506128.BO | Parnax Lab Ltd | 0.65 | 1.17 | 0.81 |
| 524654.BO | Natural Capsules Ltd | 0.49 | 1.18 | 0.89 |
| 524828.BO | BDH Industries Ltd | 0.06 | 0.61 | 0.59 |
| 530317.BO | Godavari Drugs Ltd | 0.77 | 1.23 | 0.81 |
| 540694.BO | ANG Lifesciences India Ltd | 1.92 | 1.83 | 0.8 |
| 540937.BO | Medico Remedies Ltd | 0.07 | 0.98 | 0.94 |
| 542678.BO | Cian Healthcare Ltd | 5.82 | 0.45 | 0.09 |
| ALPA.NS | Alpa Laboratories Ltd | 0.03 | 1.27 | 1.25 |
| LYKALABS.NS | Lyka Labs Ltd | 0.14 | 1.47 | 1.35 |
| VAISHALI.NS | Vaishali Pharma Ltd | 0.1 | 1.81 | 1.7 |
| Low | High | |
| Unlevered beta | 0.81 | 0.91 |
| Relevered beta | 1.16 | 1.31 |
| Adjusted relevered beta | 1.11 | 1.21 |
506128.BO'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 506128.BO:
cost_of_equity (17.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.11) + 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.