TBZ.NS
Tribhovandas Bhimji Zaveri Ltd
Price:  
188.59 
INR
Volume:  
195,067.00
India | Specialty Retail
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TBZ.NS WACC - Weighted Average Cost of Capital

The WACC of Tribhovandas Bhimji Zaveri Ltd (TBZ.NS) is 12.8%.

The Cost of Equity of Tribhovandas Bhimji Zaveri Ltd (TBZ.NS) is 16.30%.
The Cost of Debt of Tribhovandas Bhimji Zaveri Ltd (TBZ.NS) is 7.55%.

Range Selected
Cost of equity 14.40% - 18.20% 16.30%
Tax rate 23.20% - 23.70% 23.45%
Cost of debt 6.50% - 8.60% 7.55%
WACC 11.3% - 14.4% 12.8%
WACC

TBZ.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.9 1.11
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.40% 18.20%
Tax rate 23.20% 23.70%
Debt/Equity ratio 0.49 0.49
Cost of debt 6.50% 8.60%
After-tax WACC 11.3% 14.4%
Selected WACC 12.8%

TBZ.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 TBZ.NS:

cost_of_equity (16.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.9) + 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.