MANGALAM.NS WACC - Weighted Average Cost of Capital

The WACC of Mangalam Drugs and Organics Ltd (MANGALAM.NS) is 14.5%.

The Cost of Equity of Mangalam Drugs and Organics Ltd (MANGALAM.NS) is 17.65%.

The Cost of Debt of Mangalam Drugs and Organics Ltd (MANGALAM.NS) is 14.35%.

	Range	Selected
Cost of equity	15.50% - 19.80%	17.65%
Tax rate	29.20% - 33.70%	31.45%
Cost of debt	13.30% - 15.40%	14.35%
WACC	13.1% - 15.9%	14.5%

WACC

MANGALAM.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	1.28

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	19.80%

Tax rate	29.20%	33.70%
Debt/Equity ratio	0.66	0.66
Cost of debt	13.30%	15.40%

After-tax WACC	13.1%	15.9%


Selected WACC	14.5%

MANGALAM.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 MANGALAM.NS:

cost_of_equity (17.65%) = 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.