BLISSGVS.NS
Bliss GVS Pharma Ltd
Price:  
300.35 
INR
Volume:  
2,320,688.00
India | Pharmaceuticals
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BLISSGVS.NS WACC - Weighted Average Cost of Capital

The WACC of Bliss GVS Pharma Ltd (BLISSGVS.NS) is 14.9%.

The Cost of Equity of Bliss GVS Pharma Ltd (BLISSGVS.NS) is 15.10%.
The Cost of Debt of Bliss GVS Pharma Ltd (BLISSGVS.NS) is 7.80%.

Range Selected
Cost of equity 13.80% - 16.40% 15.10%
Tax rate 28.60% - 29.40% 29.00%
Cost of debt 7.50% - 8.10% 7.80%
WACC 13.6% - 16.1% 14.9%
WACC

BLISSGVS.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.84 0.92
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.80% 16.40%
Tax rate 28.60% 29.40%
Debt/Equity ratio 0.03 0.03
Cost of debt 7.50% 8.10%
After-tax WACC 13.6% 16.1%
Selected WACC 14.9%

BLISSGVS.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 BLISSGVS.NS:

cost_of_equity (15.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.84) + 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.