CAPLIPOINT.NS
Caplin Point Laboratories Ltd
Price:  
2,042.50 
INR
Volume:  
31,062.00
India | Pharmaceuticals
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CAPLIPOINT.NS WACC - Weighted Average Cost of Capital

The WACC of Caplin Point Laboratories Ltd (CAPLIPOINT.NS) is 15.3%.

The Cost of Equity of Caplin Point Laboratories Ltd (CAPLIPOINT.NS) is 15.30%.
The Cost of Debt of Caplin Point Laboratories Ltd (CAPLIPOINT.NS) is 10.55%.

Range Selected
Cost of equity 14.00% - 16.60% 15.30%
Tax rate 19.20% - 19.90% 19.55%
Cost of debt 7.50% - 13.60% 10.55%
WACC 14.0% - 16.6% 15.3%
WACC

CAPLIPOINT.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.85 0.94
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.00% 16.60%
Tax rate 19.20% 19.90%
Debt/Equity ratio 0 0
Cost of debt 7.50% 13.60%
After-tax WACC 14.0% 16.6%
Selected WACC 15.3%

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 (15.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.