ASTRAZEN.NS WACC - Weighted Average Cost of Capital

The WACC of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 14.9%.

The Cost of Equity of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 14.95%.

The Cost of Debt of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 8.70%.

	Range	Selected
Cost of equity	13.90% - 16.00%	14.95%
Tax rate	26.00% - 26.20%	26.10%
Cost of debt	7.50% - 9.90%	8.70%
WACC	13.9% - 16.0%	14.9%

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	0.84	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	16.00%

Tax rate	26.00%	26.20%
Debt/Equity ratio	0	0
Cost of debt	7.50%	9.90%

After-tax WACC	13.9%	16.0%


Selected WACC	14.9%

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 (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.