526853.BO
Bilcare Ltd
Price:  
82.23 
INR
Volume:  
21,519.00
India | Life Sciences Tools & Services
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526853.BO WACC - Weighted Average Cost of Capital

The WACC of Bilcare Ltd (526853.BO) is 12.2%.

The Cost of Equity of Bilcare Ltd (526853.BO) is 34.40%.
The Cost of Debt of Bilcare Ltd (526853.BO) is 8.80%.

Range Selected
Cost of equity 30.50% - 38.30% 34.40%
Tax rate 16.20% - 33.10% 24.65%
Cost of debt 7.00% - 10.60% 8.80%
WACC 10.9% - 13.4% 12.2%
WACC

526853.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 2.84 3.27
Additional risk adjustments 0.0% 0.5%
Cost of equity 30.50% 38.30%
Tax rate 16.20% 33.10%
Debt/Equity ratio 3.9 3.9
Cost of debt 7.00% 10.60%
After-tax WACC 10.9% 13.4%
Selected WACC 12.2%

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 (34.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (2.84) + 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.