PTC.NS WACC - Weighted Average Cost of Capital

The WACC of PTC India Ltd (PTC.NS) is 14.1%.

The Cost of Equity of PTC India Ltd (PTC.NS) is 19.20%.

The Cost of Debt of PTC India Ltd (PTC.NS) is 10.45%.

	Range	Selected
Cost of equity	16.80% - 21.60%	19.20%
Tax rate	25.90% - 26.00%	25.95%
Cost of debt	5.50% - 15.40%	10.45%
WACC	11.1% - 17.0%	14.1%

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	1.2	1.47

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.80%	21.60%

Tax rate	25.90%	26.00%
Debt/Equity ratio	0.81	0.81
Cost of debt	5.50%	15.40%

After-tax WACC	11.1%	17.0%


Selected WACC	14.1%

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 (19.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.2) + 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.