BROOKS.NS WACC - Weighted Average Cost of Capital
The WACC of Brooks Laboratories Ltd (BROOKS.NS) is 13.5%.
| Range | Selected | |
| Cost of equity | 11.2% - 15.9% | 13.55% |
| Tax rate | 16.6% - 19.1% | 17.85% |
| Cost of debt | 9.1% - 10.4% | 9.75% |
| WACC | 11.2% - 15.8% | 13.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.53 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.2% | 15.9% |
| Tax rate | 16.6% | 19.1% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 9.1% | 10.4% |
| After-tax WACC | 11.2% | 15.8% |
| Selected WACC | 13.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| BROOKS.NS | Brooks Laboratories Ltd | 0.01 | 1.2 | 1.19 |
| 043090.KQ | Cube&Company Co Ltd | 2.66 | -0.63 | -0.2 |
| 087010.KQ | Peptron Inc | 0 | -0.19 | -0.19 |
| 206650.KQ | EuBiologics Co Ltd | 0.03 | 0.2 | 0.2 |
| 526853.BO | Bilcare Ltd | 4.08 | 1.46 | 0.34 |
| 538837.BO | Jeevan Scientific Technology Ltd | 0.19 | 1.02 | 0.88 |
| 539267.BO | Dr Habeebullah Life Sciences Ltd | 0.07 | 0.22 | 0.21 |
| DCAL.NS | Dishman Carbogen Amcis Ltd | 0.69 | 1.23 | 0.79 |
| DIVISLAB.NS | Divi's Laboratories Ltd | 0 | 0.78 | 0.78 |
| SUVEN.NS | Suven Life Sciences Ltd | 0 | 1.41 | 1.41 |
| Low | High | |
| Unlevered beta | 0.29 | 0.79 |
| Relevered beta | 0.3 | 0.79 |
| Adjusted relevered beta | 0.53 | 0.86 |
BROOKS.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 BROOKS.NS:
cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.