VAISHALI.NS WACC - Weighted Average Cost of Capital

The WACC of Vaishali Pharma Ltd (VAISHALI.NS) is 15.3%.

The Cost of Equity of Vaishali Pharma Ltd (VAISHALI.NS) is 15.75%.

The Cost of Debt of Vaishali Pharma Ltd (VAISHALI.NS) is 15.65%.

	Range	Selected
Cost of equity	14.50% - 17.00%	15.75%
Tax rate	25.40% - 27.20%	26.30%
Cost of debt	12.70% - 18.60%	15.65%
WACC	14.0% - 16.7%	15.3%

WACC

VAISHALI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.92	0.98

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	17.00%

Tax rate	25.40%	27.20%
Debt/Equity ratio	0.11	0.11
Cost of debt	12.70%	18.60%

After-tax WACC	14.0%	16.7%


Selected WACC	15.3%

VAISHALI.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 VAISHALI.NS:

cost_of_equity (15.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.