BALAXI.NS WACC - Weighted Average Cost of Capital

The WACC of Balaxi Pharmaceuticals Ltd (BALAXI.NS) is 12.3%.

The Cost of Equity of Balaxi Pharmaceuticals Ltd (BALAXI.NS) is 17.25%.

The Cost of Debt of Balaxi Pharmaceuticals Ltd (BALAXI.NS) is 8.70%.

	Range	Selected
Cost of equity	14.60% - 19.90%	17.25%
Tax rate	13.40% - 16.10%	14.75%
Cost of debt	7.60% - 9.80%	8.70%
WACC	10.6% - 14.1%	12.3%

WACC

BALAXI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.93	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	19.90%

Tax rate	13.40%	16.10%
Debt/Equity ratio	0.99	0.99
Cost of debt	7.60%	9.80%

After-tax WACC	10.6%	14.1%


Selected WACC	12.3%

BALAXI.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 BALAXI.NS:

cost_of_equity (17.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.