TATAMETALI.NS WACC - Weighted Average Cost of Capital
The WACC of Tata Metaliks Ltd (TATAMETALI.NS) is 16.5%.
| Range | Selected | |
| Cost of equity | 15.4% - 17.7% | 16.55% |
| Tax rate | 19.0% - 23.2% | 21.1% |
| Cost of debt | 9.1% - 31.1% | 20.1% |
| WACC | 15.1% - 17.9% | 16.5% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.02 | 1.06 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.4% | 17.7% |
| Tax rate | 19.0% | 23.2% |
| Debt/Equity ratio | 0.04 | 0.04 |
| Cost of debt | 9.1% | 31.1% |
| After-tax WACC | 15.1% | 17.9% |
| Selected WACC | 16.5% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TATAMETALI.NS | Tata Metaliks Ltd | 0.04 | 1.05 | 1.02 |
| IMFA.NS | Indian Metals and Ferro Alloys Ltd | 0.05 | 1.07 | 1.03 |
| JSWISPL.NS | JSW Ispat Special Products Ltd | 1.48 | 1.45 | 0.66 |
| KIRLFER.NS | Kirloskar Ferrous Industries Ltd | 0.15 | 1.1 | 0.98 |
| MAITHANALL.NS | Maithan Alloys Ltd | 0.01 | 1.09 | 1.09 |
| SARDAEN.NS | Sarda Energy & Minerals Ltd | 0.09 | 0.83 | 0.78 |
| SRIPIPES.NS | Srikalahasthi Pipes Ltd | 0.32 | 1.43 | 1.14 |
| SUNFLAG.NS | Sunflag Iron and Steel Co Ltd | 0.16 | 1.31 | 1.16 |
| TINPLATE.NS | Tinplate Company of India Ltd | 0 | 0.96 | 0.96 |
| USHAMART.NS | Usha Martin Ltd | 0.04 | 1.13 | 1.1 |
| Low | High | |
| Unlevered beta | 1 | 1.05 |
| Relevered beta | 1.03 | 1.09 |
| Adjusted relevered beta | 1.02 | 1.06 |
TATAMETALI.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 TATAMETALI.NS:
cost_of_equity (16.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.02) + 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.