VIVIMEDLAB.NS WACC - Weighted Average Cost of Capital

The WACC of Vivimed Labs Ltd (VIVIMEDLAB.NS) is 10.7%.

The Cost of Equity of Vivimed Labs Ltd (VIVIMEDLAB.NS) is 52.90%.

The Cost of Debt of Vivimed Labs Ltd (VIVIMEDLAB.NS) is 6.25%.

	Range	Selected
Cost of equity	36.10% - 69.70%	52.90%
Tax rate	0.70% - 1.60%	1.15%
Cost of debt	5.50% - 7.00%	6.25%
WACC	8.4% - 13.0%	10.7%

WACC

VIVIMEDLAB.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	3.52	6.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	36.10%	69.70%

Tax rate	0.70%	1.60%
Debt/Equity ratio	9.26	9.26
Cost of debt	5.50%	7.00%

After-tax WACC	8.4%	13.0%


Selected WACC	10.7%

VIVIMEDLAB.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 VIVIMEDLAB.NS:

cost_of_equity (52.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.52) + 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.