MOREPENLAB.NS
Morepen Laboratories Ltd
Price:  
63.47 
INR
Volume:  
1,612,194.00
India | Pharmaceuticals
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MOREPENLAB.NS WACC - Weighted Average Cost of Capital

The WACC of Morepen Laboratories Ltd (MOREPENLAB.NS) is 17.2%.

The Cost of Equity of Morepen Laboratories Ltd (MOREPENLAB.NS) is 17.55%.
The Cost of Debt of Morepen Laboratories Ltd (MOREPENLAB.NS) is 5.00%.

Range Selected
Cost of equity 15.70% - 19.40% 17.55%
Tax rate 22.20% - 25.80% 24.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 15.4% - 19.0% 17.2%
WACC

MOREPENLAB.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 1.06 1.24
Additional risk adjustments 0.0% 0.5%
Cost of equity 15.70% 19.40%
Tax rate 22.20% 25.80%
Debt/Equity ratio 0.03 0.03
Cost of debt 5.00% 5.00%
After-tax WACC 15.4% 19.0%
Selected WACC 17.2%

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 (17.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.06) + 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.