MAXHEALTH.NS
Max Healthcare Institute Ltd
Price:  
1,089.80 
INR
Volume:  
1,297,288.00
India | Health Care Providers & Services
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MAXHEALTH.NS WACC - Weighted Average Cost of Capital

The WACC of Max Healthcare Institute Ltd (MAXHEALTH.NS) is 12.9%.

The Cost of Equity of Max Healthcare Institute Ltd (MAXHEALTH.NS) is 13.00%.
The Cost of Debt of Max Healthcare Institute Ltd (MAXHEALTH.NS) is 11.85%.

Range Selected
Cost of equity 11.30% - 14.70% 13.00%
Tax rate 12.40% - 19.90% 16.15%
Cost of debt 7.90% - 15.80% 11.85%
WACC 11.2% - 14.7% 12.9%
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 0.53 0.73
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.30% 14.70%
Tax rate 12.40% 19.90%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.90% 15.80%
After-tax WACC 11.2% 14.7%
Selected WACC 12.9%

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 (13.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.