SYNGENE.NS WACC - Weighted Average Cost of Capital
The WACC of Syngene International Ltd (SYNGENE.NS) is 13.0%.
| Range | Selected | |
| Cost of equity | 11.6% - 14.7% | 13.15% |
| Tax rate | 18.1% - 19.7% | 18.9% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 11.5% - 14.5% | 13.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.57 | 0.73 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.6% | 14.7% |
| Tax rate | 18.1% | 19.7% |
| Debt/Equity ratio | 0.02 | 0.02 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 11.5% | 14.5% |
| Selected WACC | 13.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| SYNGENE.NS | Syngene International Ltd | 0.02 | 0.71 | 0.7 |
| 141080.KQ | LegoChem Biosciences Inc | 0 | 0.32 | 0.32 |
| 2183.T | Linical Co Ltd | 0.29 | 0.64 | 0.52 |
| 245620.KQ | Eone Diagnomics Genome Center Co Ltd | 1.24 | 0.59 | 0.29 |
| 526853.BO | Bilcare Ltd | 4.05 | 1.46 | 0.34 |
| 538837.BO | Jeevan Scientific Technology Ltd | 0.18 | 1.02 | 0.89 |
| 6090.T | Human Metabolome Technologies Inc | 0.05 | 0.39 | 0.37 |
| 688222.SS | HitGen Inc | 0.03 | 1.65 | 1.61 |
| BPH.AX | BPH Energy Ltd | 0.01 | 0.21 | 0.21 |
| VIMTALABS.NS | Vimta Labs Ltd | 0 | 0.96 | 0.96 |
| Low | High | |
| Unlevered beta | 0.36 | 0.59 |
| Relevered beta | 0.36 | 0.6 |
| Adjusted relevered beta | 0.57 | 0.73 |
SYNGENE.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 SYNGENE.NS:
cost_of_equity (13.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.57) + 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.