APOLLOHOSP.NS
Apollo Hospitals Enterprise Ltd
Price:  
6,954.50 
INR
Volume:  
269,757.00
India | Health Care Providers & Services
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APOLLOHOSP.NS WACC - Weighted Average Cost of Capital

The WACC of Apollo Hospitals Enterprise Ltd (APOLLOHOSP.NS) is 12.2%.

The Cost of Equity of Apollo Hospitals Enterprise Ltd (APOLLOHOSP.NS) is 12.55%.
The Cost of Debt of Apollo Hospitals Enterprise Ltd (APOLLOHOSP.NS) is 7.70%.

Range Selected
Cost of equity 11.40% - 13.70% 12.55%
Tax rate 31.70% - 33.30% 32.50%
Cost of debt 7.60% - 7.80% 7.70%
WACC 11.1% - 13.3% 12.2%
WACC

APOLLOHOSP.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.55 0.63
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.40% 13.70%
Tax rate 31.70% 33.30%
Debt/Equity ratio 0.05 0.05
Cost of debt 7.60% 7.80%
After-tax WACC 11.1% 13.3%
Selected WACC 12.2%

APOLLOHOSP.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 APOLLOHOSP.NS:

cost_of_equity (12.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.55) + 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.