The WACC of Nemaura Medical Inc (NMRD) is 9.1%.
| Range | Selected | |
| Cost of equity | 3,964.50% - 18,425.70% | 11,195.10% |
| Tax rate | 1.50% - 3.50% | 2.50% |
| Cost of debt | 7.00% - 7.00% | 7.00% |
| WACC | 7.7% - 10.5% | 9.1% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 861.01 | 3289.43 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 3,964.50% | 18,425.70% |
| Tax rate | 1.50% | 3.50% |
| Debt/Equity ratio | 4963.86 | 4963.86 |
| Cost of debt | 7.00% | 7.00% |
| After-tax WACC | 7.7% | 10.5% |
| Selected WACC | 9.1% | |
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 NMRD:
cost_of_equity (11,195.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (861.01) + 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.