530477.BO
Vikram Thermo (India) Ltd
Price:  
170.5 
INR
Volume:  
20,561
India | Pharmaceuticals

530477.BO WACC - Weighted Average Cost of Capital

The WACC of Vikram Thermo (India) Ltd (530477.BO) is 15.5%.

The Cost of Equity of Vikram Thermo (India) Ltd (530477.BO) is 15.6%.
The Cost of Debt of Vikram Thermo (India) Ltd (530477.BO) is 7.7%.

RangeSelected
Cost of equity14.3% - 16.9%15.6%
Tax rate25.1% - 25.8%25.45%
Cost of debt7.5% - 7.9%7.7%
WACC14.2% - 16.7%15.5%
WACC

530477.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.890.97
Additional risk adjustments0.0%0.5%
Cost of equity14.3%16.9%
Tax rate25.1%25.8%
Debt/Equity ratio
0.010.01
Cost of debt7.5%7.9%
After-tax WACC14.2%16.7%
Selected WACC15.5%

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.