NATHBIOGEN.NS WACC - Weighted Average Cost of Capital

The WACC of Nath Bio-Genes (I) Ltd (NATHBIOGEN.NS) is 11.8%.

The Cost of Equity of Nath Bio-Genes (I) Ltd (NATHBIOGEN.NS) is 13.15%.

The Cost of Debt of Nath Bio-Genes (I) Ltd (NATHBIOGEN.NS) is 9.15%.

	Range	Selected
Cost of equity	11.20% - 15.10%	13.15%
Tax rate	4.10% - 4.80%	4.45%
Cost of debt	8.30% - 10.00%	9.15%
WACC	10.2% - 13.4%	11.8%

WACC

NATHBIOGEN.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	0.78

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.10%

Tax rate	4.10%	4.80%
Debt/Equity ratio	0.46	0.46
Cost of debt	8.30%	10.00%

After-tax WACC	10.2%	13.4%


Selected WACC	11.8%

NATHBIOGEN.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 NATHBIOGEN.NS:

cost_of_equity (13.15%) = 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.