541400.BO WACC - Weighted Average Cost of Capital
The WACC of Zim Laboratories Ltd (541400.BO) is 14.4%.
| Range | Selected | |
| Cost of equity | 13.8% - 16.2% | 15% |
| Tax rate | 29.7% - 30.6% | 30.15% |
| Cost of debt | 12.7% - 13.4% | 13.05% |
| WACC | 13.3% - 15.5% | 14.4% |
| Category | Low | High |
| Long-term bond rate | 7.4% | 7.9% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.92 | 0.98 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.8% | 16.2% |
| Tax rate | 29.7% | 30.6% |
| Debt/Equity ratio | 0.11 | 0.11 |
| Cost of debt | 12.7% | 13.4% |
| After-tax WACC | 13.3% | 15.5% |
| Selected WACC | 14.4% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 541400.BO | Zim Laboratories Ltd | 0.11 | 0.35 | 0.32 |
| 524470.BO | Syncom Formulations (India) Ltd | 0.08 | 1.72 | 1.63 |
| 524790.BO | Everest Organics Ltd | 0.14 | 0.89 | 0.82 |
| ALBERTDAVD.NS | Albert David Ltd | 0.01 | 1.51 | 1.5 |
| BALPHARMA.NS | Bal Pharma Ltd | 0.9 | 0.39 | 0.24 |
| INDSWFTLTD.NS | Ind Swift Ltd | 11.8 | 1.26 | 0.14 |
| MANGALAM.NS | Mangalam Drugs and Organics Ltd | 0.84 | 1.21 | 0.76 |
| THEMISMED.NS | Themis Medicare Ltd | 0.08 | 2.09 | 1.98 |
| VENUSREM.NS | Venus Remedies Ltd | 0.07 | 1.07 | 1.02 |
| WANBURY.NS | Wanbury Ltd | 0.12 | 2.57 | 2.37 |
| Low | High | |
| Unlevered beta | 0.8 | 1.21 |
| Relevered beta | 0.88 | 0.97 |
| Adjusted relevered beta | 0.92 | 0.98 |
541400.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 541400.BO:
cost_of_equity (15.00%) = risk_free_rate (7.65%) + equity_risk_premium (7.40%) * adjusted_beta (0.92) + 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.