BLISSGVS.NS WACC - Weighted Average Cost of Capital

The WACC of Bliss GVS Pharma Ltd (BLISSGVS.NS) is 17.7%.

The Cost of Equity of Bliss GVS Pharma Ltd (BLISSGVS.NS) is 18.80%.

The Cost of Debt of Bliss GVS Pharma Ltd (BLISSGVS.NS) is 6.15%.

	Range	Selected
Cost of equity	16.70% - 20.90%	18.80%
Tax rate	28.40% - 29.50%	28.95%
Cost of debt	4.80% - 7.50%	6.15%
WACC	15.7% - 19.8%	17.7%

WACC

BLISSGVS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.18	1.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.70%	20.90%

Tax rate	28.40%	29.50%
Debt/Equity ratio	0.08	0.08
Cost of debt	4.80%	7.50%

After-tax WACC	15.7%	19.8%


Selected WACC	17.7%

BLISSGVS.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 BLISSGVS.NS:

cost_of_equity (18.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.18) + 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.