530627.BO WACC - Weighted Average Cost of Capital

The WACC of Vipul Organics Ltd (530627.BO) is 12.4%.

The Cost of Equity of Vipul Organics Ltd (530627.BO) is 13.40%.

The Cost of Debt of Vipul Organics Ltd (530627.BO) is 8.40%.

	Range	Selected
Cost of equity	11.60% - 15.20%	13.40%
Tax rate	28.40% - 29.10%	28.75%
Cost of debt	7.70% - 9.10%	8.40%
WACC	10.8% - 14.0%	12.4%

WACC

530627.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.57	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.60%	15.20%

Tax rate	28.40%	29.10%
Debt/Equity ratio	0.15	0.15
Cost of debt	7.70%	9.10%

After-tax WACC	10.8%	14.0%


Selected WACC	12.4%

530627.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 530627.BO:

cost_of_equity (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.