ROSSARI.NS WACC - Weighted Average Cost of Capital

The WACC of Rossari Biotech Ltd (ROSSARI.NS) is 16.4%.

The Cost of Equity of Rossari Biotech Ltd (ROSSARI.NS) is 16.75%.

The Cost of Debt of Rossari Biotech Ltd (ROSSARI.NS) is 7.60%.

	Range	Selected
Cost of equity	14.90% - 18.60%	16.75%
Tax rate	26.10% - 26.40%	26.25%
Cost of debt	7.60% - 7.60%	7.60%
WACC	14.6% - 18.2%	16.4%

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	0.97	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	18.60%

Tax rate	26.10%	26.40%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.60%	7.60%

After-tax WACC	14.6%	18.2%


Selected WACC	16.4%

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 (16.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.97) + 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.