LASA.NS WACC - Weighted Average Cost of Capital

The WACC of Lasa Supergenerics Ltd (LASA.NS) is 14.1%.

The Cost of Equity of Lasa Supergenerics Ltd (LASA.NS) is 16.30%.

The Cost of Debt of Lasa Supergenerics Ltd (LASA.NS) is 7.00%.

	Range	Selected
Cost of equity	13.40% - 19.20%	16.30%
Tax rate	13.50% - 17.30%	15.40%
Cost of debt	7.00% - 7.00%	7.00%
WACC	11.9% - 16.4%	14.1%

WACC

LASA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.79	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	19.20%

Tax rate	13.50%	17.30%
Debt/Equity ratio	0.26	0.26
Cost of debt	7.00%	7.00%

After-tax WACC	11.9%	16.4%


Selected WACC	14.1%

LASA.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 LASA.NS:

cost_of_equity (16.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.