537253.BO WACC - Weighted Average Cost of Capital

The WACC of Sunil Healthcare Ltd (537253.BO) is 12.4%.

The Cost of Equity of Sunil Healthcare Ltd (537253.BO) is 14.10%.

The Cost of Debt of Sunil Healthcare Ltd (537253.BO) is 14.65%.

	Range	Selected
Cost of equity	12.40% - 15.80%	14.10%
Tax rate	24.30% - 29.80%	27.05%
Cost of debt	10.70% - 18.60%	14.65%
WACC	10.3% - 14.5%	12.4%

WACC

537253.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.67	0.86

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	15.80%

Tax rate	24.30%	29.80%
Debt/Equity ratio	0.92	0.92
Cost of debt	10.70%	18.60%

After-tax WACC	10.3%	14.5%


Selected WACC	12.4%

537253.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 537253.BO:

cost_of_equity (14.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.