523489.BO WACC - Weighted Average Cost of Capital

The WACC of Chennai Meenakshi Multispeciality Hospital Ltd (523489.BO) is 14.0%.

The Cost of Equity of Chennai Meenakshi Multispeciality Hospital Ltd (523489.BO) is 13.75%.

The Cost of Debt of Chennai Meenakshi Multispeciality Hospital Ltd (523489.BO) is 16.90%.

	Range	Selected
Cost of equity	11.80% - 15.70%	13.75%
Tax rate	2.30% - 14.50%	8.40%
Cost of debt	6.90% - 26.90%	16.90%
WACC	10.4% - 17.6%	14.0%

WACC

523489.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.59	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.70%

Tax rate	2.30%	14.50%
Debt/Equity ratio	0.37	0.37
Cost of debt	6.90%	26.90%

After-tax WACC	10.4%	17.6%


Selected WACC	14.0%

523489.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 523489.BO:

cost_of_equity (13.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.