522229.BO WACC - Weighted Average Cost of Capital

The WACC of Taneja Aerospace and Aviation Ltd (522229.BO) is 15.8%.

The Cost of Equity of Taneja Aerospace and Aviation Ltd (522229.BO) is 15.85%.

The Cost of Debt of Taneja Aerospace and Aviation Ltd (522229.BO) is 8.55%.

	Range	Selected
Cost of equity	13.60% - 18.10%	15.85%
Tax rate	26.80% - 29.40%	28.10%
Cost of debt	7.50% - 9.60%	8.55%
WACC	13.6% - 18.1%	15.8%

WACC

522229.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.81	1.1

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	18.10%

Tax rate	26.80%	29.40%
Debt/Equity ratio	0	0
Cost of debt	7.50%	9.60%

After-tax WACC	13.6%	18.1%


Selected WACC	15.8%

522229.BO'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 522229.BO:

cost_of_equity (15.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.81) + 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.