LUPIN.NS
Lupin Ltd
Price:  
2,057.10 
INR
Volume:  
743,662.00
India | Pharmaceuticals
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LUPIN.NS WACC - Weighted Average Cost of Capital

The WACC of Lupin Ltd (LUPIN.NS) is 13.3%.

The Cost of Equity of Lupin Ltd (LUPIN.NS) is 13.60%.
The Cost of Debt of Lupin Ltd (LUPIN.NS) is 5.75%.

Range Selected
Cost of equity 12.60% - 14.60% 13.60%
Tax rate 24.10% - 31.10% 27.60%
Cost of debt 4.00% - 7.50% 5.75%
WACC 12.3% - 14.4% 13.3%
WACC

LUPIN.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.68 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.60% 14.60%
Tax rate 24.10% 31.10%
Debt/Equity ratio 0.03 0.03
Cost of debt 4.00% 7.50%
After-tax WACC 12.3% 14.4%
Selected WACC 13.3%

LUPIN.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 LUPIN.NS:

cost_of_equity (13.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.