533170.BO WACC - Weighted Average Cost of Capital

The WACC of Tamboli Capital Ltd (533170.BO) is 363.2%.

The Cost of Equity of Tamboli Capital Ltd (533170.BO) is 11.75%.

The Cost of Debt of Tamboli Capital Ltd (533170.BO) is 14,186.20%.

	Range	Selected
Cost of equity	10.80% - 12.70%	11.75%
Tax rate	27.20% - 28.20%	27.70%
Cost of debt	7.50% - 28,364.90%	14,186.20%
WACC	10.6% - 715.9%	363.2%

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	0.47	0.52

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	12.70%

Tax rate	27.20%	28.20%
Debt/Equity ratio	0.04	0.04
Cost of debt	7.50%	28,364.90%

After-tax WACC	10.6%	715.9%


Selected WACC	363.2%

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 (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.47) + 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.