523323.BO WACC - Weighted Average Cost of Capital

The WACC of Kovai Medical Center and Hospital Ltd (523323.BO) is 13.4%.

The Cost of Equity of Kovai Medical Center and Hospital Ltd (523323.BO) is 13.95%.

The Cost of Debt of Kovai Medical Center and Hospital Ltd (523323.BO) is 7.35%.

	Range	Selected
Cost of equity	11.90% - 16.00%	13.95%
Tax rate	25.10% - 25.60%	25.35%
Cost of debt	7.10% - 7.60%	7.35%
WACC	11.5% - 15.4%	13.4%

WACC

523323.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.6	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	16.00%

Tax rate	25.10%	25.60%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.10%	7.60%

After-tax WACC	11.5%	15.4%


Selected WACC	13.4%

523323.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 523323.BO:

cost_of_equity (13.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.