MOREPENLAB.NS WACC - Weighted Average Cost of Capital
The WACC of Morepen Laboratories Ltd (MOREPENLAB.NS) is 17.1%.
| Range | Selected | |
| Cost of equity | 15.5% - 19.4% | 17.45% |
| Tax rate | 22.2% - 25.8% | 24% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 15.1% - 19.0% | 17.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.04 | 1.24 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.5% | 19.4% |
| Tax rate | 22.2% | 25.8% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 15.1% | 19.0% |
| Selected WACC | 17.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MOREPENLAB.NS | Morepen Laboratories Ltd | 0.03 | 1.94 | 1.9 |
| BLISSGVS.NS | Bliss GVS Pharma Ltd | 0.06 | 1.63 | 1.56 |
| INDOCO.NS | Indoco Remedies Ltd | 0.24 | 1.14 | 0.96 |
| INDSWFTLAB.NS | IND Swift Laboratories Ltd | 0.02 | 1.21 | 1.19 |
| MARKSANS.NS | Marksans Pharma Ltd | 0.01 | 1.64 | 1.63 |
| NEULANDLAB.NS | Neuland Laboratories Ltd | 0.01 | 0.91 | 0.9 |
| NOVARTIND.NS | Novartis India Ltd | 0.01 | 0.88 | 0.88 |
| SMSPHARMA.NS | SMS Pharmaceuticals Ltd | 0.13 | 1.69 | 1.54 |
| TTKHLTCARE.NS | TTK Healthcare Ltd | 0.01 | 0.83 | 0.82 |
| UNICHEMLAB.NS | Unichem Laboratories Ltd | 0.11 | 1.17 | 1.08 |
| Low | High | |
| Unlevered beta | 1.03 | 1.33 |
| Relevered beta | 1.06 | 1.36 |
| Adjusted relevered beta | 1.04 | 1.24 |
MOREPENLAB.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 MOREPENLAB.NS:
cost_of_equity (17.45%) = 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.