PTC.NS WACC - Weighted Average Cost of Capital

The WACC of PTC India Ltd (PTC.NS) is 12.7%.

The Cost of Equity of PTC India Ltd (PTC.NS) is 17.15%.

The Cost of Debt of PTC India Ltd (PTC.NS) is 9.55%.

	Range	Selected
Cost of equity	15.50% - 18.80%	17.15%
Tax rate	26.00% - 28.10%	27.05%
Cost of debt	7.00% - 12.10%	9.55%
WACC	11.0% - 14.4%	12.7%

WACC

PTC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.04	1.18

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	18.80%

Tax rate	26.00%	28.10%
Debt/Equity ratio	0.79	0.79
Cost of debt	7.00%	12.10%

After-tax WACC	11.0%	14.4%


Selected WACC	12.7%

PTC.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 PTC.NS:

cost_of_equity (17.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.