THYROCARE.NS WACC - Weighted Average Cost of Capital

The WACC of Thyrocare Technologies Ltd (THYROCARE.NS) is 11.9%.

The Cost of Equity of Thyrocare Technologies Ltd (THYROCARE.NS) is 11.90%.

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

	Range	Selected
Cost of equity	11.00% - 12.80%	11.90%
Tax rate	26.70% - 27.50%	27.10%
Cost of debt	7.50% - 25.60%	16.55%
WACC	11.0% - 12.8%	11.9%

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	0.5	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	12.80%

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

After-tax WACC	11.0%	12.8%


Selected WACC	11.9%

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 (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.