540737.BO WACC - Weighted Average Cost of Capital
The WACC of Shree Ganesh Remedies Ltd (540737.BO) is 13.3%.
| Range | Selected | |
| Cost of equity | 12.3% - 14.9% | 13.6% |
| Tax rate | 24.7% - 25.0% | 24.85% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 12.0% - 14.6% | 13.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.65 | 0.76 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.3% | 14.9% |
| Tax rate | 24.7% | 25.0% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 12.0% | 14.6% |
| Selected WACC | 13.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 540737.BO | Shree Ganesh Remedies Ltd | 0.04 | 1.01 | 0.98 |
| 506879.BO | Gujarat Themis Biosyn Ltd | 0 | 0.74 | 0.74 |
| 524202.BO | Lactose India Ltd | 0.3 | 0.66 | 0.54 |
| 530477.BO | Vikram Thermo (India) Ltd | 0.01 | 0.53 | 0.53 |
| 538965.BO | Concord Drugs Ltd | 0.54 | 0.52 | 0.37 |
| 542678.BO | Cian Healthcare Ltd | 5.83 | 0.45 | 0.08 |
| BAFNAPH.NS | Bafna Pharmaceuticals Ltd | 0.13 | 0.15 | 0.14 |
| KILITCH.NS | Kilitch Drugs (India) Ltd | 0.05 | 0.93 | 0.9 |
| KREBSBIO.NS | Krebs Biochemicals and Industries Ltd | 1.18 | 1.54 | 0.81 |
| ZOTA.NS | Zota Health Care Ltd | 0.03 | 0.39 | 0.38 |
| Low | High | |
| Unlevered beta | 0.47 | 0.62 |
| Relevered beta | 0.48 | 0.64 |
| Adjusted relevered beta | 0.65 | 0.76 |
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.