532384.BO
Tyche Industries Ltd
Price:  
138.90 
INR
Volume:  
37,041.00
India | Pharmaceuticals
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532384.BO WACC - Weighted Average Cost of Capital

The WACC of Tyche Industries Ltd (532384.BO) is 12.4%.

The Cost of Equity of Tyche Industries Ltd (532384.BO) is 21.10%.
The Cost of Debt of Tyche Industries Ltd (532384.BO) is 5.00%.

Range Selected
Cost of equity 19.00% - 23.20% 21.10%
Tax rate 25.50% - 25.90% 25.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.4% - 13.4% 12.4%
WACC

532384.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.47 1.64
Additional risk adjustments 0.0% 0.5%
Cost of equity 19.00% 23.20%
Tax rate 25.50% 25.90%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 11.4% 13.4%
Selected WACC 12.4%

532384.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 532384.BO:

cost_of_equity (21.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.47) + 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.