531592.BO
Generic Pharmasec Ltd
Price:  
2.06 
INR
Volume:  
295,918
India | Trading Companies & Distributors

531592.BO WACC - Weighted Average Cost of Capital

The WACC of Generic Pharmasec Ltd (531592.BO) is 11.6%.

The Cost of Equity of Generic Pharmasec Ltd (531592.BO) is 11.85%.
The Cost of Debt of Generic Pharmasec Ltd (531592.BO) is 8.6%.

RangeSelected
Cost of equity10.2% - 13.5%11.85%
Tax rate30.0% - 30.0%30%
Cost of debt8.6% - 8.6%8.6%
WACC10.0% - 13.2%11.6%
WACC

531592.BO WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.40.61
Additional risk adjustments0.0%0.5%
Cost of equity10.2%13.5%
Tax rate30.0%30.0%
Debt/Equity ratio
0.050.05
Cost of debt8.6%8.6%
After-tax WACC10.0%13.2%
Selected WACC11.6%

531592.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 531592.BO:

cost_of_equity (11.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.