HCG.NS
Healthcare Global Enterprises Ltd
Price:  
573.55 
INR
Volume:  
445,938.00
India | Health Care Providers & Services
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HCG.NS WACC - Weighted Average Cost of Capital

The WACC of Healthcare Global Enterprises Ltd (HCG.NS) is 11.9%.

The Cost of Equity of Healthcare Global Enterprises Ltd (HCG.NS) is 12.50%.
The Cost of Debt of Healthcare Global Enterprises Ltd (HCG.NS) is 12.85%.

Range Selected
Cost of equity 11.00% - 14.00% 12.50%
Tax rate 25.50% - 45.60% 35.55%
Cost of debt 10.30% - 15.40% 12.85%
WACC 10.5% - 13.3% 11.9%
WACC

HCG.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.5 0.66
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.00% 14.00%
Tax rate 25.50% 45.60%
Debt/Equity ratio 0.16 0.16
Cost of debt 10.30% 15.40%
After-tax WACC 10.5% 13.3%
Selected WACC 11.9%

HCG.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 HCG.NS:

cost_of_equity (12.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.