SYNCOM.NS WACC - Weighted Average Cost of Capital
The WACC of Syncom Healthcare Ltd (SYNCOM.NS) is 8.7%.
| Range | Selected | |
| Cost of equity | 13.2% - 15.3% | 14.25% |
| Tax rate | 30.0% - 31.8% | 30.9% |
| Cost of debt | 4.0% - 7.0% | 5.5% |
| WACC | 7.7% - 9.7% | 8.7% |
| Category | Low | High |
| Long-term bond rate | 7.5% | 8.0% |
| Equity market risk premium | 6.9% | 7.9% |
| Adjusted beta | 0.82 | 0.86 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.2% | 15.3% |
| Tax rate | 30.0% | 31.8% |
| Debt/Equity ratio | 1.13 | 1.13 |
| Cost of debt | 4.0% | 7.0% |
| After-tax WACC | 7.7% | 9.7% |
| Selected WACC | 8.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SYNCOM.NS | Syncom Healthcare Ltd | 1.13 | 0 | 0 |
| 511523.BO | Veerhealth Care Ltd | 0.81 | 0.47 | 0.3 |
| 524202.BO | Lactose India Ltd | 0.33 | 0.66 | 0.54 |
| 524711.BO | Vista Pharmaceuticals Ltd | 0.12 | 0.54 | 0.5 |
| 530477.BO | Vikram Thermo (India) Ltd | 0.01 | 0.53 | 0.53 |
| 531210.BO | Colinz Laboratories Ltd | 0.04 | 0.91 | 0.88 |
| 531541.BO | KOBO Biotech Ltd | 20.94 | 0.49 | 0.03 |
| 538965.BO | Concord Drugs Ltd | 0.56 | 0.52 | 0.38 |
| 542678.BO | Cian Healthcare Ltd | 5.82 | 0.45 | 0.09 |
| PDPL.NS | Parenteral Drugs (India) Ltd | 12.4 | 0.38 | 0.04 |
| VAISHALI.NS | Vaishali Pharma Ltd | 0.1 | 1.81 | 1.7 |
| Low | High | |
| Unlevered beta | 0.3 | 0.5 |
| Relevered beta | 0.73 | 0.79 |
| Adjusted relevered beta | 0.82 | 0.86 |
SYNCOM.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 SYNCOM.NS:
cost_of_equity (14.25%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.82) + 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.