538965.BO WACC - Weighted Average Cost of Capital

The WACC of Concord Drugs Ltd (538965.BO) is 13.9%.

The Cost of Equity of Concord Drugs Ltd (538965.BO) is 15.30%.

The Cost of Debt of Concord Drugs Ltd (538965.BO) is 13.15%.

	Range	Selected
Cost of equity	13.50% - 17.10%	15.30%
Tax rate	24.40% - 26.60%	25.50%
Cost of debt	10.90% - 15.40%	13.15%
WACC	12.2% - 15.6%	13.9%

WACC

538965.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.8	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	17.10%

Tax rate	24.40%	26.60%
Debt/Equity ratio	0.34	0.34
Cost of debt	10.90%	15.40%

After-tax WACC	12.2%	15.6%


Selected WACC	13.9%

538965.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 538965.BO:

cost_of_equity (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.