531541.BO WACC - Weighted Average Cost of Capital
The WACC of KOBO Biotech Ltd (531541.BO) is 7.1%.
| Range | Selected | |
| Cost of equity | 73.0% - 97.1% | 85.05% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.6% - 7.6% | 7.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 7.95 | 9.58 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 73.0% | 97.1% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 21.64 | 21.64 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.6% | 7.6% |
| Selected WACC | 7.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 531541.BO | KOBO Biotech Ltd | 21.64 | 0.49 | 0.03 |
| 506919.BO | Makers Laboratories Ltd | 0.16 | 2.07 | 1.85 |
| 524202.BO | Lactose India Ltd | 0.3 | 0.66 | 0.55 |
| 524572.BO | Pharmaids Pharmacuticals Ltd | 0.04 | 0.86 | 0.84 |
| 524711.BO | Vista Pharmaceuticals Ltd | 0.11 | 0.54 | 0.5 |
| 530233.BO | Auro Laboratories Ltd | 0.16 | 0.9 | 0.81 |
| 531210.BO | Colinz Laboratories Ltd | 0.04 | 0.91 | 0.88 |
| 531398.BO | Source Natural Foods and Herbal Supplements Ltd | 0 | 1.63 | 1.63 |
| PDPL.NS | Parenteral Drugs (India) Ltd | 12.4 | 0.38 | 0.04 |
| VAISHALI.NS | Vaishali Pharma Ltd | 0.1 | 1.6 | 1.5 |
| Low | High | |
| Unlevered beta | 0.7 | 0.86 |
| Relevered beta | 11.37 | 13.81 |
| Adjusted relevered beta | 7.95 | 9.58 |
531541.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 531541.BO:
cost_of_equity (85.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (7.95) + 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.