524520.BO WACC - Weighted Average Cost of Capital

The WACC of KMC Speciality Hospitals India Ltd (524520.BO) is 11.8%.

The Cost of Equity of KMC Speciality Hospitals India Ltd (524520.BO) is 12.25%.

The Cost of Debt of KMC Speciality Hospitals India Ltd (524520.BO) is 7.35%.

	Range	Selected
Cost of equity	10.70% - 13.80%	12.25%
Tax rate	26.00% - 27.30%	26.65%
Cost of debt	6.10% - 8.60%	7.35%
WACC	10.3% - 13.3%	11.8%

WACC

524520.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.46	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	13.80%

Tax rate	26.00%	27.30%
Debt/Equity ratio	0.07	0.07
Cost of debt	6.10%	8.60%

After-tax WACC	10.3%	13.3%


Selected WACC	11.8%

524520.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 524520.BO:

cost_of_equity (12.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.