ASTRAZEN.NS
Astrazeneca Pharma India Ltd
Price:  
7,980 
INR
Volume:  
15,250
India | Pharmaceuticals

ASTRAZEN.NS WACC - Weighted Average Cost of Capital

The WACC of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 15.3%.

The Cost of Equity of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 15.3%.
The Cost of Debt of Astrazeneca Pharma India Ltd (ASTRAZEN.NS) is 7.7%.

RangeSelected
Cost of equity14.2% - 16.4%15.3%
Tax rate26.2% - 26.5%26.35%
Cost of debt7.5% - 7.9%7.7%
WACC14.2% - 16.4%15.3%
WACC

ASTRAZEN.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.880.91
Additional risk adjustments0.0%0.5%
Cost of equity14.2%16.4%
Tax rate26.2%26.5%
Debt/Equity ratio
00
Cost of debt7.5%7.9%
After-tax WACC14.2%16.4%
Selected WACC15.3%

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 (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.88) + 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.