INDRAMEDCO.NS
Indraprastha Medical Corporation Ltd
Price:  
394.00 
INR
Volume:  
91,509.00
India | Health Care Providers & Services
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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 15.00%.
The Cost of Debt of Indraprastha Medical Corporation Ltd (INDRAMEDCO.NS) is 14.90%.

Range Selected
Cost of equity 13.00% - 17.00% 15.00%
Tax rate 25.70% - 26.10% 25.90%
Cost of debt 7.50% - 22.30% 14.90%
WACC 12.9% - 17.0% 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 0.74 0.99
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 17.00%
Tax rate 25.70% 26.10%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.50% 22.30%
After-tax WACC 12.9% 17.0%
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 (15.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.