TATAELXSI.NS WACC - Weighted Average Cost of Capital
The WACC of Tata Elxsi Ltd (TATAELXSI.NS) is 17.1%.
| Range | Selected | |
| Cost of equity | 15.2% - 19.2% | 17.2% |
| Tax rate | 24.1% - 25.2% | 24.65% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 15.2% - 19.1% | 17.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.01 | 1.22 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.2% | 19.2% |
| Tax rate | 24.1% | 25.2% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 15.2% | 19.1% |
| Selected WACC | 17.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TATAELXSI.NS | Tata Elxsi Ltd | 0 | 1.57 | 1.56 |
| 053800.KQ | Ahnlab Inc | 0 | 0.52 | 0.52 |
| 214180.KQ | Minwise Co Ltd | 0.06 | 0.48 | 0.46 |
| 300768.SZ | Hangzhou DPtech Technologies Co Ltd | 0 | 1.43 | 1.43 |
| 4013.T | Nittsusystem Co Ltd | 0.11 | 0.46 | 0.42 |
| KPITTECH.NS | KPIT Technologies Ltd | 0.01 | 1.7 | 1.69 |
| NEWGEN.NS | Newgen Software Technologies Ltd | 0 | 1.18 | 1.18 |
| QUICKHEAL.NS | Quick Heal Technologies Ltd | 0 | 1.51 | 1.51 |
| RAMCOSYS.NS | Ramco Systems Ltd | 0.04 | 1.28 | 1.24 |
| ROUTE.NS | Route Mobile Ltd | 0.06 | 0.79 | 0.76 |
| Low | High | |
| Unlevered beta | 1.01 | 1.32 |
| Relevered beta | 1.01 | 1.33 |
| Adjusted relevered beta | 1.01 | 1.22 |
TATAELXSI.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 TATAELXSI.NS:
cost_of_equity (17.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.01) + 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.