MANGALAM.NS WACC - Weighted Average Cost of Capital

The WACC of Mangalam Drugs and Organics Ltd (MANGALAM.NS) is 10.8%.

The Cost of Equity of Mangalam Drugs and Organics Ltd (MANGALAM.NS) is 17.60%.

The Cost of Debt of Mangalam Drugs and Organics Ltd (MANGALAM.NS) is 10.95%.

	Range	Selected
Cost of equity	14.10% - 21.10%	17.60%
Tax rate	29.20% - 33.70%	31.45%
Cost of debt	7.00% - 14.90%	10.95%
WACC	8.0% - 13.6%	10.8%

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	0.87	1.42

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.10%	21.10%

Tax rate	29.20%	33.70%
Debt/Equity ratio	2.05	2.05
Cost of debt	7.00%	14.90%

After-tax WACC	8.0%	13.6%


Selected WACC	10.8%

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 (17.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.