542248.BO WACC - Weighted Average Cost of Capital
The WACC of Deccan Health Care Ltd (542248.BO) is 13.9%.
| Range | Selected | |
| Cost of equity | 12.8% - 15.4% | 14.1% |
| Tax rate | 28.2% - 31.3% | 29.75% |
| Cost of debt | 5.8% - 7.0% | 6.4% |
| WACC | 12.6% - 15.1% | 13.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.72 | 0.81 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 12.8% | 15.4% |
| Tax rate | 28.2% | 31.3% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.8% | 7.0% |
| After-tax WACC | 12.6% | 15.1% |
| Selected WACC | 13.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 542248.BO | Deccan Health Care Ltd | 0.03 | 1.65 | 1.62 |
| 523120.BO | Ador Multi Products Ltd | 0.03 | 0.93 | 0.91 |
| 530689.BO | Lykis Ltd | 1.4 | 0.28 | 0.14 |
| 531412.BO | Radix Industries India Ltd | 0 | -0.01 | -0.01 |
| 542771.BO | Novateor Research Laboratories Ltd | 0.06 | 0.53 | 0.51 |
| BAJAJCON.NS | Bajaj Consumer Care Ltd | 0 | 0.84 | 0.84 |
| CUPID.NS | Cupid Ltd | 0 | 1.05 | 1.05 |
| EMAMILTD.NS | Emami Ltd | 0 | 0.61 | 0.61 |
| GILLETTE.NS | Gillette India Ltd | 0 | 0.52 | 0.52 |
| JHS.NS | JHS Svendgaard Laboratories Ltd | 0.04 | 0.62 | 0.6 |
| Low | High | |
| Unlevered beta | 0.57 | 0.7 |
| Relevered beta | 0.58 | 0.72 |
| Adjusted relevered beta | 0.72 | 0.81 |
542248.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 542248.BO:
cost_of_equity (14.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.