TATACONSUM.NS
Tata Consumer Products Ltd
Price:  
1,155.30 
INR
Volume:  
1,382,140.00
India | Food Products
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TATACONSUM.NS WACC - Weighted Average Cost of Capital

The WACC of Tata Consumer Products Ltd (TATACONSUM.NS) is 14.3%.

The Cost of Equity of Tata Consumer Products Ltd (TATACONSUM.NS) is 14.50%.
The Cost of Debt of Tata Consumer Products Ltd (TATACONSUM.NS) is 8.10%.

Range Selected
Cost of equity 13.00% - 16.00% 14.50%
Tax rate 23.80% - 24.50% 24.15%
Cost of debt 7.80% - 8.40% 8.10%
WACC 12.8% - 15.7% 14.3%
WACC

TATACONSUM.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.74 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 13.00% 16.00%
Tax rate 23.80% 24.50%
Debt/Equity ratio 0.03 0.03
Cost of debt 7.80% 8.40%
After-tax WACC 12.8% 15.7%
Selected WACC 14.3%

TATACONSUM.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 TATACONSUM.NS:

cost_of_equity (14.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.