VENUSREM.NS WACC - Weighted Average Cost of Capital

The WACC of Venus Remedies Ltd (VENUSREM.NS) is 14.5%.

The Cost of Equity of Venus Remedies Ltd (VENUSREM.NS) is 15.55%.

The Cost of Debt of Venus Remedies Ltd (VENUSREM.NS) is 5.75%.

	Range	Selected
Cost of equity	13.30% - 17.80%	15.55%
Tax rate	26.10% - 28.30%	27.20%
Cost of debt	4.00% - 7.50%	5.75%
WACC	12.4% - 16.6%	14.5%

WACC

VENUSREM.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.78	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	17.80%

Tax rate	26.10%	28.30%
Debt/Equity ratio	0.1	0.1
Cost of debt	4.00%	7.50%

After-tax WACC	12.4%	16.6%


Selected WACC	14.5%

VENUSREM.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 VENUSREM.NS:

cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.78) + 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.