VIVIMEDLAB.NS WACC - Weighted Average Cost of Capital

The WACC of Vivimed Labs Ltd (VIVIMEDLAB.NS) is 8.8%.

The Cost of Equity of Vivimed Labs Ltd (VIVIMEDLAB.NS) is 29.75%.

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

	Range	Selected
Cost of equity	20.60% - 38.90%	29.75%
Tax rate	0.80% - 1.60%	1.20%
Cost of debt	5.50% - 7.00%	6.25%
WACC	7.1% - 10.5%	8.8%

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	1.65	3.33

Additional risk adjustments	0.0%	0.5%
Cost of equity	20.60%	38.90%

Tax rate	0.80%	1.60%
Debt/Equity ratio	7.84	7.84
Cost of debt	5.50%	7.00%

After-tax WACC	7.1%	10.5%


Selected WACC	8.8%

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 (29.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.65) + 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.