ITI.NS WACC - Weighted Average Cost of Capital
The WACC of ITI Ltd (ITI.NS) is 15.8%.
| Range | Selected | |
| Cost of equity | 14.2% - 18.2% | 16.2% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 7.0% - 12.9% | 9.95% |
| WACC | 13.8% - 17.8% | 15.8% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.88 | 1.11 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.2% | 18.2% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.05 | 0.05 |
| Cost of debt | 7.0% | 12.9% |
| After-tax WACC | 13.8% | 17.8% |
| Selected WACC | 15.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| ITI.NS | ITI Ltd | 0.05 | 1.63 | 1.58 |
| 1523.HK | Plover Bay Technologies Ltd | 0.01 | 0.49 | 0.49 |
| 517258.BO | Precision Electronics Ltd | 0.3 | 0.64 | 0.53 |
| AKSHOPTFBR.NS | Aksh Optifibre Ltd | 0.7 | 1.77 | 1.19 |
| ASTRAMICRO.NS | Astra Micro Wave Products Ltd | 0.04 | 1.52 | 1.48 |
| MRO-TEK.NS | MRO-TEK Reality Ltd | 1.02 | 0.75 | 0.44 |
| STLTECH.NS | Sterlite Technologies Ltd | 0.6 | 1.38 | 0.97 |
| TEJASNET.NS | Tejas Networks Ltd | 0.15 | 1.21 | 1.09 |
| TNTELE.NS | Tamilnadu Telecommunication Ltd | 0.59 | 0.68 | 0.48 |
| VINDHYATEL.NS | Vindhya Telelinks Ltd | 0.58 | 1.76 | 1.25 |
| Low | High | |
| Unlevered beta | 0.8 | 1.13 |
| Relevered beta | 0.82 | 1.16 |
| Adjusted relevered beta | 0.88 | 1.11 |
ITI.NS'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 ITI.NS:
cost_of_equity (16.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.88) + 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.