TCIDEVELOP.NS WACC - Weighted Average Cost of Capital

The WACC of TCI Developers Ltd (TCIDEVELOP.NS) is 12.2%.

The Cost of Equity of TCI Developers Ltd (TCIDEVELOP.NS) is 12.75%.

The Cost of Debt of TCI Developers Ltd (TCIDEVELOP.NS) is 5.80%.

	Range	Selected
Cost of equity	11.10% - 14.40%	12.75%
Tax rate	24.30% - 30.30%	27.30%
Cost of debt	4.00% - 7.60%	5.80%
WACC	10.6% - 13.8%	12.2%

WACC

TCIDEVELOP.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.51	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.10%	14.40%

Tax rate	24.30%	30.30%
Debt/Equity ratio	0.07	0.07
Cost of debt	4.00%	7.60%

After-tax WACC	10.6%	13.8%


Selected WACC	12.2%

TCIDEVELOP.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 TCIDEVELOP.NS:

cost_of_equity (12.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.51) + 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.