INDSWFTLAB.NS WACC - Weighted Average Cost of Capital

The WACC of IND Swift Laboratories Ltd (INDSWFTLAB.NS) is 18.2%.

The Cost of Equity of IND Swift Laboratories Ltd (INDSWFTLAB.NS) is 18.40%.

The Cost of Debt of IND Swift Laboratories Ltd (INDSWFTLAB.NS) is 13.55%.

	Range	Selected
Cost of equity	16.50% - 20.30%	18.40%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	11.70% - 15.40%	13.55%
WACC	16.3% - 20.1%	18.2%

WACC

INDSWFTLAB.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.16	1.34

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.50%	20.30%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.03	0.03
Cost of debt	11.70%	15.40%

After-tax WACC	16.3%	20.1%


Selected WACC	18.2%

INDSWFTLAB.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 INDSWFTLAB.NS:

cost_of_equity (18.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.16) + 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.