The WACC of Kilitch Drugs (India) Ltd (KILITCH.NS) is 15.4%.
Range | Selected | |
Cost of equity | 14.3% - 17.2% | 15.75% |
Tax rate | 29.0% - 30.3% | 29.65% |
Cost of debt | 7.8% - 12.9% | 10.35% |
WACC | 13.9% - 16.8% | 15.4% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 0.89 | 1 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 14.3% | 17.2% |
Tax rate | 29.0% | 30.3% |
Debt/Equity ratio | 0.05 | 0.05 |
Cost of debt | 7.8% | 12.9% |
After-tax WACC | 13.9% | 16.8% |
Selected WACC | 15.4% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
KILITCH.NS | Kilitch Drugs (India) Ltd | 0.05 | 1.13 | 1.1 |
506919.BO | Makers Laboratories Ltd | 0.15 | 2.07 | 1.87 |
524506.BO | Coral Laboratories Ltd | 0.01 | 1.24 | 1.23 |
524654.BO | Natural Capsules Ltd | 0.46 | 1.18 | 0.89 |
524828.BO | BDH Industries Ltd | 0.01 | 0.61 | 0.61 |
530233.BO | Auro Laboratories Ltd | 0.28 | 0.9 | 0.76 |
530477.BO | Vikram Thermo (India) Ltd | 0.01 | 0.53 | 0.53 |
531739.BO | Gennex Laboratories Ltd | 0.08 | 0.89 | 0.85 |
542724.BO | Earum Pharmaceuticals Ltd | 1.69 | 0.83 | 0.38 |
LYKALABS.NS | Lyka Labs Ltd | 0.1 | 1.56 | 1.46 |
Low | High | |
Unlevered beta | 0.81 | 0.97 |
Relevered beta | 0.84 | 1 |
Adjusted relevered beta | 0.89 | 1 |
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 KILITCH.NS:
cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.