PDPL.NS WACC - Weighted Average Cost of Capital

The WACC of Parenteral Drugs (India) Ltd (PDPL.NS) is 13.1%.

The Cost of Equity of Parenteral Drugs (India) Ltd (PDPL.NS) is 67.80%.

The Cost of Debt of Parenteral Drugs (India) Ltd (PDPL.NS) is 11.80%.

	Range	Selected
Cost of equity	49.00% - 86.60%	67.80%
Tax rate	25.60% - 27.10%	26.35%
Cost of debt	7.00% - 16.60%	11.80%
WACC	8.5% - 17.6%	13.1%

WACC

PDPL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	5.07	8.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	49.00%	86.60%

Tax rate	25.60%	27.10%
Debt/Equity ratio	12.4	12.4
Cost of debt	7.00%	16.60%

After-tax WACC	8.5%	17.6%


Selected WACC	13.1%

PDPL.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 PDPL.NS:

cost_of_equity (67.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (5.07) + 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.