GLAND.NS WACC - Weighted Average Cost of Capital

The WACC of Gland Pharma Ltd (GLAND.NS) is 14.6%.

The Cost of Equity of Gland Pharma Ltd (GLAND.NS) is 13.55%.

The Cost of Debt of Gland Pharma Ltd (GLAND.NS) is 105.60%.

	Range	Selected
Cost of equity	12.50% - 14.60%	13.55%
Tax rate	25.20% - 25.60%	25.40%
Cost of debt	7.50% - 203.70%	105.60%
WACC	12.4% - 16.7%	14.6%

WACC

GLAND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	14.60%

Tax rate	25.20%	25.60%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	203.70%

After-tax WACC	12.4%	16.7%


Selected WACC	14.6%

GLAND.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 GLAND.NS:

cost_of_equity (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.