539997.BO
Kwality Pharmaceuticals Ltd
Price:  
1,167.55 
INR
Volume:  
33,571.00
India | Pharmaceuticals
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539997.BO WACC - Weighted Average Cost of Capital

The WACC of Kwality Pharmaceuticals Ltd (539997.BO) is 14.5%.

The Cost of Equity of Kwality Pharmaceuticals Ltd (539997.BO) is 15.40%.
The Cost of Debt of Kwality Pharmaceuticals Ltd (539997.BO) is 8.90%.

Range Selected
Cost of equity 14.30% - 16.50% 15.40%
Tax rate 25.30% - 26.10% 25.70%
Cost of debt 7.90% - 9.90% 8.90%
WACC 13.5% - 15.5% 14.5%
WACC

539997.BO WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.9 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.30% 16.50%
Tax rate 25.30% 26.10%
Debt/Equity ratio 0.12 0.12
Cost of debt 7.90% 9.90%
After-tax WACC 13.5% 15.5%
Selected WACC 14.5%

539997.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 539997.BO:

cost_of_equity (15.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.