THEMISMED.NS WACC - Weighted Average Cost of Capital

The WACC of Themis Medicare Ltd (THEMISMED.NS) is 14.9%.

The Cost of Equity of Themis Medicare Ltd (THEMISMED.NS) is 15.55%.

The Cost of Debt of Themis Medicare Ltd (THEMISMED.NS) is 8.40%.

	Range	Selected
Cost of equity	13.10% - 18.00%	15.55%
Tax rate	20.30% - 22.30%	21.30%
Cost of debt	8.10% - 8.70%	8.40%
WACC	12.7% - 17.2%	14.9%

WACC

THEMISMED.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.75	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	18.00%

Tax rate	20.30%	22.30%
Debt/Equity ratio	0.07	0.07
Cost of debt	8.10%	8.70%

After-tax WACC	12.7%	17.2%


Selected WACC	14.9%

THEMISMED.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 THEMISMED.NS:

cost_of_equity (15.55%) = 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.