506260.BO WACC - Weighted Average Cost of Capital
The WACC of Anuh Pharma Ltd (506260.BO) is 14.7%.
| Range | Selected | |
| Cost of equity | 13.3% - 16.3% | 14.8% |
| Tax rate | 23.6% - 24.4% | 24% |
| Cost of debt | 7.5% - 10.4% | 8.95% |
| WACC | 13.2% - 16.2% | 14.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.77 | 0.9 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.3% | 16.3% |
| Tax rate | 23.6% | 24.4% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 10.4% |
| After-tax WACC | 13.2% | 16.2% |
| Selected WACC | 14.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 506260.BO | Anuh Pharma Ltd | 0 | 0.57 | 0.57 |
| 506414.BO | Fermenta Biotech Ltd | 0.18 | 0.35 | 0.31 |
| 541400.BO | Zim Laboratories Ltd | 0.11 | 0.35 | 0.32 |
| ALBERTDAVD.NS | Albert David Ltd | 0.01 | 1.56 | 1.55 |
| GUFICBIO.NS | Gufic Biosciences Ltd | 0.02 | 1.03 | 1.02 |
| KOPRAN.NS | Kopran Ltd | 0.12 | 1.4 | 1.29 |
| LINCOLN.NS | Lincoln Pharmaceuticals Ltd | 0 | 1.92 | 1.92 |
| MANGALAM.NS | Mangalam Drugs and Organics Ltd | 0.93 | 1.1 | 0.65 |
| THEMISMED.NS | Themis Medicare Ltd | 0.09 | 1.75 | 1.64 |
| VENUSREM.NS | Venus Remedies Ltd | 0.1 | 0.9 | 0.84 |
| Low | High | |
| Unlevered beta | 0.76 | 1.13 |
| Relevered beta | 0.66 | 0.85 |
| Adjusted relevered beta | 0.77 | 0.9 |
506260.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 506260.BO:
cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.