RPGLIFE.NS
RPG Life Sciences Ltd
Price:  
2,502.3 
INR
Volume:  
14,812
India | Pharmaceuticals

RPGLIFE.NS WACC - Weighted Average Cost of Capital

The WACC of RPG Life Sciences Ltd (RPGLIFE.NS) is 12.3%.

The Cost of Equity of RPG Life Sciences Ltd (RPGLIFE.NS) is 19.1%.
The Cost of Debt of RPG Life Sciences Ltd (RPGLIFE.NS) is 7.5%.

RangeSelected
Cost of equity16.3% - 21.9%19.1%
Tax rate25.5% - 25.9%25.7%
Cost of debt7.5% - 7.5%7.5%
WACC10.9% - 13.7%12.3%
WACC

RPGLIFE.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta1.131.5
Additional risk adjustments0.0%0.5%
Cost of equity16.3%21.9%
Tax rate25.5%25.9%
Debt/Equity ratio
11
Cost of debt7.5%7.5%
After-tax WACC10.9%13.7%
Selected WACC12.3%

RPGLIFE.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 RPGLIFE.NS:

cost_of_equity (19.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.13) + 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.