ROSSARI.NS WACC - Weighted Average Cost of Capital

The WACC of Rossari Biotech Ltd (ROSSARI.NS) is 15.9%.

The Cost of Equity of Rossari Biotech Ltd (ROSSARI.NS) is 16.70%.

The Cost of Debt of Rossari Biotech Ltd (ROSSARI.NS) is 7.80%.

	Range	Selected
Cost of equity	15.60% - 17.80%	16.70%
Tax rate	26.30% - 26.40%	26.35%
Cost of debt	7.80% - 7.80%	7.80%
WACC	14.8% - 16.9%	15.9%

WACC

ROSSARI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.05	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.60%	17.80%

Tax rate	26.30%	26.40%
Debt/Equity ratio	0.08	0.08
Cost of debt	7.80%	7.80%

After-tax WACC	14.8%	16.9%


Selected WACC	15.9%

ROSSARI.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 ROSSARI.NS:

cost_of_equity (16.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.05) + 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.