524654.BO WACC - Weighted Average Cost of Capital
The WACC of Natural Capsules Ltd (524654.BO) is 12.6%.
| Range | Selected | |
| Cost of equity | 13.6% - 16.9% | 15.25% |
| Tax rate | 27.4% - 29.3% | 28.35% |
| Cost of debt | 9.0% - 12.1% | 10.55% |
| WACC | 11.1% - 14.0% | 12.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.81 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.6% | 16.9% |
| Tax rate | 27.4% | 29.3% |
| Debt/Equity ratio | 0.54 | 0.54 |
| Cost of debt | 9.0% | 12.1% |
| After-tax WACC | 11.1% | 14.0% |
| Selected WACC | 12.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 524654.BO | Natural Capsules Ltd | 0.54 | 1.18 | 0.85 |
| 524711.BO | Vista Pharmaceuticals Ltd | 0.11 | 0.54 | 0.5 |
| 524828.BO | BDH Industries Ltd | 0.06 | 0.61 | 0.59 |
| 530477.BO | Vikram Thermo (India) Ltd | 0.01 | 0.53 | 0.53 |
| 531726.BO | Panchsheel Organics Ltd | 0.03 | 1.22 | 1.19 |
| 531739.BO | Gennex Laboratories Ltd | 0.06 | 0.89 | 0.86 |
| 538965.BO | Concord Drugs Ltd | 0.54 | 0.52 | 0.38 |
| 542678.BO | Cian Healthcare Ltd | 5.83 | 0.45 | 0.09 |
| LYKALABS.NS | Lyka Labs Ltd | 0.14 | 1.3 | 1.18 |
| PDPL.NS | Parenteral Drugs (India) Ltd | 12.4 | 0.38 | 0.04 |
| Low | High | |
| Unlevered beta | 0.52 | 0.69 |
| Relevered beta | 0.72 | 0.96 |
| Adjusted relevered beta | 0.81 | 0.97 |
524654.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 524654.BO:
cost_of_equity (15.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.