SUVEN.NS WACC - Weighted Average Cost of Capital
The WACC of Suven Life Sciences Ltd (SUVEN.NS) is 13.3%.
| Range | Selected | |
| Cost of equity | 10.7% - 16.0% | 13.35% |
| Tax rate | 0.6% - 3.3% | 1.95% |
| Cost of debt | 7.0% - 10.0% | 8.5% |
| WACC | 10.7% - 16.0% | 13.3% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.46 | 0.87 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 10.7% | 16.0% |
| Tax rate | 0.6% | 3.3% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.0% | 10.0% |
| After-tax WACC | 10.7% | 16.0% |
| Selected WACC | 13.3% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SUVEN.NS | Suven Life Sciences Ltd | 0 | 1.89 | 1.89 |
| 043090.KQ | Cube&Company Co Ltd | 1.21 | -0.63 | -0.29 |
| 087010.KQ | Peptron Inc | 0 | -0.08 | -0.08 |
| 114450.KQ | KPX Lifescience Co Ltd | 0.09 | 0.02 | 0.02 |
| 4133.TW | Abnova Taiwan Corp | 0.01 | 0.89 | 0.88 |
| 526853.BO | Bilcare Ltd | 3.9 | 1.46 | 0.3 |
| BROOKS.NS | Brooks Laboratories Ltd | 0.01 | 1.36 | 1.34 |
| DCAL.NS | Dishman Carbogen Amcis Ltd | 0.55 | 1.42 | 0.92 |
| DIVISLAB.NS | Divi's Laboratories Ltd | 0 | 0.75 | 0.75 |
| MEM.AX | Memphasys Ltd | 0.48 | 0.07 | 0.05 |
| Low | High | |
| Unlevered beta | 0.2 | 0.81 |
| Relevered beta | 0.19 | 0.81 |
| Adjusted relevered beta | 0.46 | 0.87 |
SUVEN.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 SUVEN.NS:
cost_of_equity (13.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.