526853.BO WACC - Weighted Average Cost of Capital
The WACC of Bilcare Ltd (526853.BO) is 11.8%.
| Range | Selected | |
| Cost of equity | 30.2% - 37.2% | 33.7% |
| Tax rate | 16.2% - 33.1% | 24.65% |
| Cost of debt | 7.0% - 10.6% | 8.8% |
| WACC | 10.7% - 13.0% | 11.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 2.81 | 3.15 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 30.2% | 37.2% |
| Tax rate | 16.2% | 33.1% |
| Debt/Equity ratio | 4.08 | 4.08 |
| Cost of debt | 7.0% | 10.6% |
| After-tax WACC | 10.7% | 13.0% |
| Selected WACC | 11.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 526853.BO | Bilcare Ltd | 4.08 | 1.46 | 0.34 |
| 039860.KQ | NanoEnTek Inc | 0 | 0.95 | 0.95 |
| 6118.HK | Austar Lifesciences Ltd | 1.15 | 0.85 | 0.44 |
| 7707.T | Precision System Science Co Ltd | 0.25 | 1.7 | 1.41 |
| BROOKS.NS | Brooks Laboratories Ltd | 0.01 | 1.2 | 1.19 |
| DCAL.NS | Dishman Carbogen Amcis Ltd | 0.69 | 1.23 | 0.79 |
| DIVISLAB.NS | Divi's Laboratories Ltd | 0 | 0.78 | 0.78 |
| PAL.AX | Palla Pharma Ltd | 0.39 | 1.18 | 0.9 |
| SUVEN.NS | Suven Life Sciences Ltd | 0 | 1.41 | 1.41 |
| VIMTALABS.NS | Vimta Labs Ltd | 0.01 | 1.02 | 1.01 |
| Low | High | |
| Unlevered beta | 0.85 | 0.97 |
| Relevered beta | 3.7 | 4.21 |
| Adjusted relevered beta | 2.81 | 3.15 |
526853.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 526853.BO:
cost_of_equity (33.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.81) + 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.