THYROCARE.NS WACC - Weighted Average Cost of Capital

The WACC of Thyrocare Technologies Ltd (THYROCARE.NS) is 11.6%.

The Cost of Equity of Thyrocare Technologies Ltd (THYROCARE.NS) is 11.65%.

The Cost of Debt of Thyrocare Technologies Ltd (THYROCARE.NS) is 16.55%.

	Range	Selected
Cost of equity	10.70% - 12.60%	11.65%
Tax rate	26.70% - 27.50%	27.10%
Cost of debt	7.50% - 25.60%	16.55%
WACC	10.6% - 12.7%	11.6%

WACC

THYROCARE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.46	0.51

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	12.60%

Tax rate	26.70%	27.50%
Debt/Equity ratio	0	0
Cost of debt	7.50%	25.60%

After-tax WACC	10.6%	12.7%


Selected WACC	11.6%

THYROCARE.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 THYROCARE.NS:

cost_of_equity (11.65%) = 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.