530315.BO WACC - Weighted Average Cost of Capital

The WACC of Hindustan Tin Works Ltd (530315.BO) is 13.3%.

The Cost of Equity of Hindustan Tin Works Ltd (530315.BO) is 16.50%.

The Cost of Debt of Hindustan Tin Works Ltd (530315.BO) is 10.25%.

	Range	Selected
Cost of equity	14.40% - 18.60%	16.50%
Tax rate	25.90% - 26.60%	26.25%
Cost of debt	10.00% - 10.50%	10.25%
WACC	11.9% - 14.7%	13.3%

WACC

530315.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.91	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	18.60%

Tax rate	25.90%	26.60%
Debt/Equity ratio	0.55	0.55
Cost of debt	10.00%	10.50%

After-tax WACC	11.9%	14.7%


Selected WACC	13.3%

530315.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 530315.BO:

cost_of_equity (16.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + 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.