INDRAMEDCO.NS WACC - Weighted Average Cost of Capital

The WACC of Indraprastha Medical Corporation Ltd (INDRAMEDCO.NS) is 15.0%.

The Cost of Equity of Indraprastha Medical Corporation Ltd (INDRAMEDCO.NS) is 15.05%.

The Cost of Debt of Indraprastha Medical Corporation Ltd (INDRAMEDCO.NS) is 14.90%.

	Range	Selected
Cost of equity	12.80% - 17.30%	15.05%
Tax rate	25.70% - 26.10%	25.90%
Cost of debt	7.50% - 22.30%	14.90%
WACC	12.8% - 17.3%	15.0%

WACC

INDRAMEDCO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.72	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	17.30%

Tax rate	25.70%	26.10%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	22.30%

After-tax WACC	12.8%	17.3%


Selected WACC	15.0%

INDRAMEDCO.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 INDRAMEDCO.NS:

cost_of_equity (15.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.