532384.BO
Tyche Industries Ltd
Price:  
140.00 
INR
Volume:  
1,155.00
India | Pharmaceuticals
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532384.BO WACC - Weighted Average Cost of Capital

The WACC of Tyche Industries Ltd (532384.BO) is 12.1%.

The Cost of Equity of Tyche Industries Ltd (532384.BO) is 20.55%.
The Cost of Debt of Tyche Industries Ltd (532384.BO) is 5.00%.

Range Selected
Cost of equity 18.50% - 22.60% 20.55%
Tax rate 25.50% - 25.90% 25.70%
Cost of debt 5.00% - 5.00% 5.00%
WACC 11.1% - 13.1% 12.1%
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 1.4 1.58
Additional risk adjustments 0.0% 0.5%
Cost of equity 18.50% 22.60%
Tax rate 25.50% 25.90%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 11.1% 13.1%
Selected WACC 12.1%

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 (20.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.4) + 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.