540737.BO WACC - Weighted Average Cost of Capital

The WACC of Shree Ganesh Remedies Ltd (540737.BO) is 13.3%.

The Cost of Equity of Shree Ganesh Remedies Ltd (540737.BO) is 13.60%.

The Cost of Debt of Shree Ganesh Remedies Ltd (540737.BO) is 7.50%.

	Range	Selected
Cost of equity	12.30% - 14.90%	13.60%
Tax rate	24.70% - 25.00%	24.85%
Cost of debt	7.50% - 7.50%	7.50%
WACC	12.0% - 14.5%	13.3%

WACC

540737.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.65	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	14.90%

Tax rate	24.70%	25.00%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.50%	7.50%

After-tax WACC	12.0%	14.5%


Selected WACC	13.3%

540737.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 540737.BO:

cost_of_equity (13.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.65) + 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.