IVP.NS WACC - Weighted Average Cost of Capital

The WACC of IVP Ltd (IVP.NS) is 13.4%.

The Cost of Equity of IVP Ltd (IVP.NS) is 17.10%.

The Cost of Debt of IVP Ltd (IVP.NS) is 8.40%.

	Range	Selected
Cost of equity	15.50% - 18.70%	17.10%
Tax rate	26.20% - 28.80%	27.50%
Cost of debt	7.70% - 9.10%	8.40%
WACC	12.2% - 14.6%	13.4%

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	1.04	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	18.70%

Tax rate	26.20%	28.80%
Debt/Equity ratio	0.51	0.51
Cost of debt	7.70%	9.10%

After-tax WACC	12.2%	14.6%


Selected WACC	13.4%

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 (17.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.