GUFICBIO.NS WACC - Weighted Average Cost of Capital

The WACC of Gufic Biosciences Ltd (GUFICBIO.NS) is 11.6%.

The Cost of Equity of Gufic Biosciences Ltd (GUFICBIO.NS) is 12.10%.

The Cost of Debt of Gufic Biosciences Ltd (GUFICBIO.NS) is 9.15%.

	Range	Selected
Cost of equity	11.10% - 13.10%	12.10%
Tax rate	25.00% - 25.40%	25.20%
Cost of debt	8.30% - 10.00%	9.15%
WACC	10.6% - 12.6%	11.6%

WACC

GUFICBIO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.57

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	13.10%

Tax rate	25.00%	25.40%
Debt/Equity ratio	0.12	0.12
Cost of debt	8.30%	10.00%

After-tax WACC	10.6%	12.6%


Selected WACC	11.6%

GUFICBIO.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 GUFICBIO.NS:

cost_of_equity (12.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.