524572.BO
Pharmaids Pharmacuticals Ltd
Price:  
66.00 
INR
Volume:  
20,786.00
India | Pharmaceuticals
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524572.BO WACC - Weighted Average Cost of Capital

The WACC of Pharmaids Pharmacuticals Ltd (524572.BO) is 11.9%.

The Cost of Equity of Pharmaids Pharmacuticals Ltd (524572.BO) is 12.95%.
The Cost of Debt of Pharmaids Pharmacuticals Ltd (524572.BO) is 7.00%.

Range Selected
Cost of equity 11.80% - 14.10% 12.95%
Tax rate 15.30% - 22.60% 18.95%
Cost of debt 7.00% - 7.00% 7.00%
WACC 11.0% - 12.8% 11.9%
WACC

524572.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 0.67
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.80% 14.10%
Tax rate 15.30% 22.60%
Debt/Equity ratio 0.17 0.17
Cost of debt 7.00% 7.00%
After-tax WACC 11.0% 12.8%
Selected WACC 11.9%

524572.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 524572.BO:

cost_of_equity (12.95%) = 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.