ASTRAZEN.NS WACC - Weighted Average Cost of Capital

The WACC of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 15.4%.

The Cost of Equity of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 15.40%.

The Cost of Debt of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 7.70%.

	Range	Selected
Cost of equity	14.10% - 16.70%	15.40%
Tax rate	26.20% - 26.50%	26.35%
Cost of debt	7.50% - 7.90%	7.70%
WACC	14.1% - 16.7%	15.4%

WACC

ASTRAZEN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.87	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	16.70%

Tax rate	26.20%	26.50%
Debt/Equity ratio	0	0
Cost of debt	7.50%	7.90%

After-tax WACC	14.1%	16.7%


Selected WACC	15.4%

ASTRAZEN.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 ASTRAZEN.NS:

cost_of_equity (15.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.