ORCHPHARMA.NS
Orchid Pharma Ltd
Price:  
628.75 
INR
Volume:  
1,738,687.00
India | Pharmaceuticals
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ORCHPHARMA.NS WACC - Weighted Average Cost of Capital

The WACC of Orchid Pharma Ltd (ORCHPHARMA.NS) is 14.8%.

The Cost of Equity of Orchid Pharma Ltd (ORCHPHARMA.NS) is 15.20%.
The Cost of Debt of Orchid Pharma Ltd (ORCHPHARMA.NS) is 7.65%.

Range Selected
Cost of equity 14.00% - 16.40% 15.20%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 7.50% - 7.80% 7.65%
WACC 13.7% - 15.9% 14.8%
WACC

ORCHPHARMA.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.86 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.00% 16.40%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.04 0.04
Cost of debt 7.50% 7.80%
After-tax WACC 13.7% 15.9%
Selected WACC 14.8%

ORCHPHARMA.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 ORCHPHARMA.NS:

cost_of_equity (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.