SANOFI.NS
Sanofi India Ltd
Price:  
6,192.5 
INR
Volume:  
16,033
India | Pharmaceuticals

SANOFI.NS WACC - Weighted Average Cost of Capital

The WACC of Sanofi India Ltd (SANOFI.NS) is 14.2%.

The Cost of Equity of Sanofi India Ltd (SANOFI.NS) is 14.2%.
The Cost of Debt of Sanofi India Ltd (SANOFI.NS) is 7.5%.

RangeSelected
Cost of equity13.1% - 15.3%14.2%
Tax rate27.8% - 28.7%28.25%
Cost of debt7.5% - 7.5%7.5%
WACC13.1% - 15.3%14.2%
WACC

SANOFI.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.750.8
Additional risk adjustments0.0%0.5%
Cost of equity13.1%15.3%
Tax rate27.8%28.7%
Debt/Equity ratio
00
Cost of debt7.5%7.5%
After-tax WACC13.1%15.3%
Selected WACC14.2%

SANOFI.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 SANOFI.NS:

cost_of_equity (14.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.75) + 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.