524663.BO WACC - Weighted Average Cost of Capital
The WACC of Bharat Immunologicals and Biologicals Corporation Ltd (524663.BO) is 17.4%.
| Range | Selected | |
| Cost of equity | 12.3% - 16.4% | 14.35% |
| Tax rate | 23.7% - 25.3% | 24.5% |
| Cost of debt | 7.0% - 50.0% | 28.5% |
| WACC | 9.3% - 25.4% | 17.4% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.65 | 0.92 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.3% | 16.4% |
| Tax rate | 23.7% | 25.3% |
| Debt/Equity ratio | 0.75 | 0.75 |
| Cost of debt | 7.0% | 50.0% |
| After-tax WACC | 9.3% | 25.4% |
| Selected WACC | 17.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 524663.BO | Bharat Immunologicals and Biologicals Corporation Ltd | 0.75 | 2.52 | 1.61 |
| 036480.KQ | Daesung Microbiological Labs Co Ltd | 0.66 | 0.52 | 0.35 |
| 1AD.AX | Adalta Ltd | 0.63 | 1.15 | 0.78 |
| 690.HK | Uni-Bio Science Group Ltd | 0.27 | -0.03 | -0.03 |
| 8247.HK | Biosino Bio-Technology and Science Inc | 1.87 | 0.59 | 0.25 |
| BIOCON.NS | Biocon Ltd | 0.41 | 1.32 | 1.01 |
| DVL.AX | dorsaVi Ltd | 0.18 | 1.28 | 1.13 |
| HESTERBIO.NS | Hester Biosciences Ltd | 0.17 | 0.47 | 0.41 |
| IMC.AX | Immuron Ltd | 0 | -0.05 | -0.05 |
| NC6.AX | Nanollose Ltd | 0 | -0.77 | -0.76 |
| PANACEABIO.NS | Panacea Biotec Ltd | 0.01 | 2.05 | 2.04 |
| Low | High | |
| Unlevered beta | 0.35 | 0.78 |
| Relevered beta | 0.48 | 0.88 |
| Adjusted relevered beta | 0.65 | 0.92 |
524663.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 524663.BO:
cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.