CAPLIPOINT.NS WACC - Weighted Average Cost of Capital
The WACC of Caplin Point Laboratories Ltd (CAPLIPOINT.NS) is 16.0%.
| Range | Selected | |
| Cost of equity | 14.6% - 17.4% | 16% |
| Tax rate | 19.2% - 19.9% | 19.55% |
| Cost of debt | 7.5% - 14.8% | 11.15% |
| WACC | 14.6% - 17.4% | 16.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.94 | 1.03 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.6% | 17.4% |
| Tax rate | 19.2% | 19.9% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 14.8% |
| After-tax WACC | 14.6% | 17.4% |
| Selected WACC | 16.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| CAPLIPOINT.NS | Caplin Point Laboratories Ltd | 0 | 1.51 | 1.51 |
| 506260.BO | Anuh Pharma Ltd | 0 | 0.57 | 0.57 |
| 506414.BO | Fermenta Biotech Ltd | 0.18 | 0.35 | 0.31 |
| INDOCO.NS | Indoco Remedies Ltd | 0.3 | 1.21 | 0.98 |
| MARKSANS.NS | Marksans Pharma Ltd | 0.01 | 1.89 | 1.87 |
| NEULANDLAB.NS | Neuland Laboratories Ltd | 0.01 | 1.21 | 1.21 |
| SHILPAMED.NS | Shilpa Medicare Ltd | 0.15 | 1.15 | 1.03 |
| TTKHLTCARE.NS | TTK Healthcare Ltd | 0.01 | 0.8 | 0.79 |
| UNICHEMLAB.NS | Unichem Laboratories Ltd | 0.06 | 1.11 | 1.05 |
| VIVIMEDLAB.NS | Vivimed Labs Ltd | 9.32 | 1.31 | 0.15 |
| Low | High | |
| Unlevered beta | 0.9 | 1.04 |
| Relevered beta | 0.91 | 1.04 |
| Adjusted relevered beta | 0.94 | 1.03 |
CAPLIPOINT.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 CAPLIPOINT.NS:
cost_of_equity (16.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.94) + 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.