MAXHEALTH.NS WACC - Weighted Average Cost of Capital

The WACC of Max Healthcare Institute Ltd (MAXHEALTH.NS) is 13.3%.

The Cost of Equity of Max Healthcare Institute Ltd (MAXHEALTH.NS) is 13.40%.

The Cost of Debt of Max Healthcare Institute Ltd (MAXHEALTH.NS) is 11.05%.

	Range	Selected
Cost of equity	12.00% - 14.80%	13.40%
Tax rate	20.80% - 22.90%	21.85%
Cost of debt	7.60% - 14.50%	11.05%
WACC	11.9% - 14.8%	13.3%

WACC

MAXHEALTH.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.61	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	14.80%

Tax rate	20.80%	22.90%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.60%	14.50%

After-tax WACC	11.9%	14.8%


Selected WACC	13.3%

MAXHEALTH.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 MAXHEALTH.NS:

cost_of_equity (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.61) + 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.