BALAXI.NS WACC - Weighted Average Cost of Capital

The WACC of Balaxi Pharmaceuticals Ltd (BALAXI.NS) is 12.0%.

The Cost of Equity of Balaxi Pharmaceuticals Ltd (BALAXI.NS) is 11.70%.

The Cost of Debt of Balaxi Pharmaceuticals Ltd (BALAXI.NS) is 17.15%.

	Range	Selected
Cost of equity	10.30% - 13.10%	11.70%
Tax rate	17.10% - 24.00%	20.55%
Cost of debt	7.50% - 26.80%	17.15%
WACC	9.5% - 14.4%	12.0%

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	0.41	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.30%	13.10%

Tax rate	17.10%	24.00%
Debt/Equity ratio	0.23	0.23
Cost of debt	7.50%	26.80%

After-tax WACC	9.5%	14.4%


Selected WACC	12.0%

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 (11.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.41) + 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.