530477.BO WACC - Weighted Average Cost of Capital
The WACC of Vikram Thermo (India) Ltd (530477.BO) is 15.5%.
| Range | Selected | |
| Cost of equity | 14.3% - 16.9% | 15.6% |
| Tax rate | 25.1% - 25.8% | 25.45% |
| Cost of debt | 7.5% - 7.9% | 7.7% |
| WACC | 14.2% - 16.7% | 15.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.89 | 0.97 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.3% | 16.9% |
| Tax rate | 25.1% | 25.8% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.5% | 7.9% |
| After-tax WACC | 14.2% | 16.7% |
| Selected WACC | 15.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 530477.BO | Vikram Thermo (India) Ltd | 0.01 | 0.53 | 0.53 |
| 506919.BO | Makers Laboratories Ltd | 0.14 | 2.07 | 1.87 |
| 524654.BO | Natural Capsules Ltd | 0.49 | 1.18 | 0.86 |
| 524828.BO | BDH Industries Ltd | 0.06 | 0.61 | 0.58 |
| 530233.BO | Auro Laboratories Ltd | 0.17 | 0.9 | 0.8 |
| 531726.BO | Panchsheel Organics Ltd | 0.03 | 1.22 | 1.19 |
| 531739.BO | Gennex Laboratories Ltd | 0.06 | 0.89 | 0.86 |
| 542678.BO | Cian Healthcare Ltd | 5.82 | 0.45 | 0.08 |
| KILITCH.NS | Kilitch Drugs (India) Ltd | 0.04 | 1.1 | 1.07 |
| LYKALABS.NS | Lyka Labs Ltd | 0.14 | 1.47 | 1.34 |
| Low | High | |
| Unlevered beta | 0.83 | 0.94 |
| Relevered beta | 0.84 | 0.96 |
| Adjusted relevered beta | 0.89 | 0.97 |
530477.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 530477.BO:
cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.