TANTIACONS.NS WACC - Weighted Average Cost of Capital

The WACC of Tantia Constructions Ltd (TANTIACONS.NS) is 9.9%.

The Cost of Equity of Tantia Constructions Ltd (TANTIACONS.NS) is 57.75%.

The Cost of Debt of Tantia Constructions Ltd (TANTIACONS.NS) is 5.50%.

	Range	Selected
Cost of equity	34.60% - 80.90%	57.75%
Tax rate	-% - -%	-%
Cost of debt	4.00% - 7.00%	5.50%
WACC	6.6% - 13.3%	9.9%

WACC

TANTIACONS.NS WACC calculation

Category	Low	High

Long-term bond rate	7.2%	7.7%
Equity market risk premium	8.8%	9.8%
Adjusted beta	3.1	7.4

Additional risk adjustments	0.0%	0.5%
Cost of equity	34.60%	80.90%

Tax rate	-%	-%
Debt/Equity ratio	10.81	10.81
Cost of debt	4.00%	7.00%

After-tax WACC	6.6%	13.3%


Selected WACC	9.9%

TANTIACONS.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 TANTIACONS.NS:

cost_of_equity (57.75%) = risk_free_rate (7.45%) + equity_risk_premium (9.30%) * adjusted_beta (3.1) + 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.