WOCKPHARMA.NS
Wockhardt Ltd
Price:  
1,697.30 
INR
Volume:  
390,848.00
India | Pharmaceuticals
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WOCKPHARMA.NS WACC - Weighted Average Cost of Capital

The WACC of Wockhardt Ltd (WOCKPHARMA.NS) is 14.7%.

The Cost of Equity of Wockhardt Ltd (WOCKPHARMA.NS) is 15.20%.
The Cost of Debt of Wockhardt Ltd (WOCKPHARMA.NS) is 11.95%.

Range Selected
Cost of equity 13.80% - 16.60% 15.20%
Tax rate 24.20% - 38.40% 31.30%
Cost of debt 8.50% - 15.40% 11.95%
WACC 13.3% - 16.1% 14.7%
WACC

WOCKPHARMA.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.83 0.93
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.80% 16.60%
Tax rate 24.20% 38.40%
Debt/Equity ratio 0.07 0.07
Cost of debt 8.50% 15.40%
After-tax WACC 13.3% 16.1%
Selected WACC 14.7%

WOCKPHARMA.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 WOCKPHARMA.NS:

cost_of_equity (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.83) + 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.