APLLTD.NS
Alembic Pharmaceuticals Ltd
Price:  
976 
INR
Volume:  
60,016
India | Pharmaceuticals

APLLTD.NS WACC - Weighted Average Cost of Capital

The WACC of Alembic Pharmaceuticals Ltd (APLLTD.NS) is 13.4%.

The Cost of Equity of Alembic Pharmaceuticals Ltd (APLLTD.NS) is 13.8%.
The Cost of Debt of Alembic Pharmaceuticals Ltd (APLLTD.NS) is 8.55%.

RangeSelected
Cost of equity12.7% - 14.9%13.8%
Tax rate11.5% - 17.2%14.35%
Cost of debt7.6% - 9.5%8.55%
WACC12.4% - 14.5%13.4%
WACC

APLLTD.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.710.76
Additional risk adjustments0.0%0.5%
Cost of equity12.7%14.9%
Tax rate11.5%17.2%
Debt/Equity ratio
0.070.07
Cost of debt7.6%9.5%
After-tax WACC12.4%14.5%
Selected WACC13.4%

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 (13.80%) = 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.