VIMTALABS.NS WACC - Weighted Average Cost of Capital

The WACC of Vimta Labs Ltd (VIMTALABS.NS) is 13.0%.

The Cost of Equity of Vimta Labs Ltd (VIMTALABS.NS) is 13.05%.

The Cost of Debt of Vimta Labs Ltd (VIMTALABS.NS) is 6.40%.

	Range	Selected
Cost of equity	11.50% - 14.60%	13.05%
Tax rate	24.90% - 25.30%	25.10%
Cost of debt	5.30% - 7.50%	6.40%
WACC	11.5% - 14.5%	13.0%

WACC

VIMTALABS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.56	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	14.60%

Tax rate	24.90%	25.30%
Debt/Equity ratio	0.01	0.01
Cost of debt	5.30%	7.50%

After-tax WACC	11.5%	14.5%


Selected WACC	13.0%

VIMTALABS.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 VIMTALABS.NS:

cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.