IVP.NS WACC - Weighted Average Cost of Capital

The WACC of IVP Ltd (IVP.NS) is 12.3%.

The Cost of Equity of IVP Ltd (IVP.NS) is 14.20%.

The Cost of Debt of IVP Ltd (IVP.NS) is 7.35%.

	Range	Selected
Cost of equity	12.80% - 15.60%	14.20%
Tax rate	25.80% - 26.00%	25.90%
Cost of debt	7.00% - 7.70%	7.35%
WACC	11.2% - 13.4%	12.3%

WACC

IVP.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	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.80%	15.60%

Tax rate	25.80%	26.00%
Debt/Equity ratio	0.28	0.28
Cost of debt	7.00%	7.70%

After-tax WACC	11.2%	13.4%


Selected WACC	12.3%

IVP.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 IVP.NS:

cost_of_equity (14.20%) = 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.