540694.BO WACC - Weighted Average Cost of Capital

The WACC of ANG Lifesciences India Ltd (540694.BO) is 12.7%.

The Cost of Equity of ANG Lifesciences India Ltd (540694.BO) is 22.05%.

The Cost of Debt of ANG Lifesciences India Ltd (540694.BO) is 11.30%.

	Range	Selected
Cost of equity	20.20% - 23.90%	22.05%
Tax rate	26.30% - 28.80%	27.55%
Cost of debt	7.00% - 15.60%	11.30%
WACC	10.1% - 15.3%	12.7%

WACC

540694.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.6	1.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.20%	23.90%

Tax rate	26.30%	28.80%
Debt/Equity ratio	2.07	2.07
Cost of debt	7.00%	15.60%

After-tax WACC	10.1%	15.3%


Selected WACC	12.7%

540694.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 540694.BO:

cost_of_equity (22.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.6) + 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.