APLLTD.NS WACC - Weighted Average Cost of Capital

The WACC of Alembic Pharmaceuticals Ltd (APLLTD.NS) is 13.8%.

The Cost of Equity of Alembic Pharmaceuticals Ltd (APLLTD.NS) is 14.05%.

The Cost of Debt of Alembic Pharmaceuticals Ltd (APLLTD.NS) is 7.10%.

	Range	Selected
Cost of equity	12.70% - 15.40%	14.05%
Tax rate	11.50% - 17.50%	14.50%
Cost of debt	6.70% - 7.50%	7.10%
WACC	12.5% - 15.1%	13.8%

WACC

APLLTD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.71	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	15.40%

Tax rate	11.50%	17.50%
Debt/Equity ratio	0.03	0.03
Cost of debt	6.70%	7.50%

After-tax WACC	12.5%	15.1%


Selected WACC	13.8%

APLLTD.NS'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 APLLTD.NS:

cost_of_equity (14.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.71) + 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.