VIVIMEDLAB.NS WACC - Weighted Average Cost of Capital
The WACC of Vivimed Labs Ltd (VIVIMEDLAB.NS) is 12.9%.
| Range | Selected | |
| Cost of equity | 36.2% - 77.3% | 56.75% |
| Tax rate | 0.7% - 1.6% | 1.15% |
| Cost of debt | 6.7% - 10.0% | 8.35% |
| WACC | 9.5% - 16.4% | 12.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 3.53 | 7.46 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 36.2% | 77.3% |
| Tax rate | 0.7% | 1.6% |
| Debt/Equity ratio | 9.32 | 9.32 |
| Cost of debt | 6.7% | 10.0% |
| After-tax WACC | 9.5% | 16.4% |
| Selected WACC | 12.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| VIVIMEDLAB.NS | Vivimed Labs Ltd | 9.32 | 1.31 | 0.13 |
| 506260.BO | Anuh Pharma Ltd | 0 | 0.57 | 0.57 |
| 506414.BO | Fermenta Biotech Ltd | 0.16 | 0.35 | 0.31 |
| 541400.BO | Zim Laboratories Ltd | 0.11 | 0.35 | 0.31 |
| BLISSGVS.NS | Bliss GVS Pharma Ltd | 0.08 | 1.66 | 1.54 |
| INDSWFTLAB.NS | IND Swift Laboratories Ltd | 0.04 | 1.44 | 1.39 |
| INDSWFTLTD.NS | Ind Swift Ltd | 12.71 | 1 | 0.07 |
| LINCOLN.NS | Lincoln Pharmaceuticals Ltd | 0 | 1.91 | 1.9 |
| MOREPENLAB.NS | Morepen Laboratories Ltd | 0.01 | 2.03 | 2.02 |
| TTKHLTCARE.NS | TTK Healthcare Ltd | 0.01 | 0.81 | 0.8 |
| Low | High | |
| Unlevered beta | 0.47 | 1.04 |
| Relevered beta | 4.78 | 10.64 |
| Adjusted relevered beta | 3.53 | 7.46 |
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 (56.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (3.53) + 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.