533170.BO WACC - Weighted Average Cost of Capital

The WACC of Tamboli Capital Ltd (533170.BO) is 205.7%.

The Cost of Equity of Tamboli Capital Ltd (533170.BO) is 11.40%.

The Cost of Debt of Tamboli Capital Ltd (533170.BO) is 14,184.45%.

	Range	Selected
Cost of equity	10.40% - 12.40%	11.40%
Tax rate	27.00% - 28.20%	27.60%
Cost of debt	7.50% - 28,361.40%	14,184.45%
WACC	10.3% - 401.2%	205.7%

WACC

533170.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.49

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	12.40%

Tax rate	27.00%	28.20%
Debt/Equity ratio	0.02	0.02
Cost of debt	7.50%	28,361.40%

After-tax WACC	10.3%	401.2%


Selected WACC	205.7%

533170.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 533170.BO:

cost_of_equity (11.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.