523696.BO
Fortis Malar Hospitals Ltd
Price:  
76.12 
INR
Volume:  
31,486.00
India | Health Care Providers & Services
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523696.BO WACC - Weighted Average Cost of Capital

The WACC of Fortis Malar Hospitals Ltd (523696.BO) is 13.8%.

The Cost of Equity of Fortis Malar Hospitals Ltd (523696.BO) is 17.05%.
The Cost of Debt of Fortis Malar Hospitals Ltd (523696.BO) is 5.00%.

Range Selected
Cost of equity 15.30% - 18.80% 17.05%
Tax rate 19.00% - 27.50% 23.25%
Cost of debt 5.00% - 5.00% 5.00%
WACC 12.5% - 15.1% 13.8%
WACC

523696.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.01 1.17
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.30% 18.80%
Tax rate 19.00% 27.50%
Debt/Equity ratio 0.33 0.33
Cost of debt 5.00% 5.00%
After-tax WACC 12.5% 15.1%
Selected WACC 13.8%

523696.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 523696.BO:

cost_of_equity (17.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.