524711.BO WACC - Weighted Average Cost of Capital

The WACC of Vista Pharmaceuticals Ltd (524711.BO) is 12.7%.

The Cost of Equity of Vista Pharmaceuticals Ltd (524711.BO) is 13.45%.

The Cost of Debt of Vista Pharmaceuticals Ltd (524711.BO) is 8.25%.

	Range	Selected
Cost of equity	12.30% - 14.60%	13.45%
Tax rate	10.30% - 27.30%	18.80%
Cost of debt	7.00% - 9.50%	8.25%
WACC	11.6% - 13.8%	12.7%

WACC

524711.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.65	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	14.60%

Tax rate	10.30%	27.30%
Debt/Equity ratio	0.12	0.12
Cost of debt	7.00%	9.50%

After-tax WACC	11.6%	13.8%


Selected WACC	12.7%

524711.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 524711.BO:

cost_of_equity (13.45%) = 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.