524717.BO WACC - Weighted Average Cost of Capital

The WACC of Titan Biotech Ltd (524717.BO) is 14.9%.

The Cost of Equity of Titan Biotech Ltd (524717.BO) is 15.10%.

The Cost of Debt of Titan Biotech Ltd (524717.BO) is 6.50%.

	Range	Selected
Cost of equity	13.60% - 16.60%	15.10%
Tax rate	25.10% - 25.20%	25.15%
Cost of debt	5.50% - 7.50%	6.50%
WACC	13.4% - 16.3%	14.9%

WACC

524717.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	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.60%	16.60%

Tax rate	25.10%	25.20%
Debt/Equity ratio	0.02	0.02
Cost of debt	5.50%	7.50%

After-tax WACC	13.4%	16.3%


Selected WACC	14.9%

524717.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 524717.BO:

cost_of_equity (15.10%) = 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.