TCIFINANCE.NS
Tci Finance Ltd
Price:  
15.83 
INR
Volume:  
31,991.00
India | Diversified Financial Services
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TCIFINANCE.NS WACC - Weighted Average Cost of Capital

The WACC of Tci Finance Ltd (TCIFINANCE.NS) is 13.7%.

The Cost of Equity of Tci Finance Ltd (TCIFINANCE.NS) is 14.40%.
The Cost of Debt of Tci Finance Ltd (TCIFINANCE.NS) is 5.00%.

Range Selected
Cost of equity 12.80% - 16.00% 14.40%
Tax rate 30.00% - 30.00% 30.00%
Cost of debt 5.00% - 5.00% 5.00%
WACC 12.2% - 15.2% 13.7%
WACC

TCIFINANCE.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.72 0.88
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 16.00%
Tax rate 30.00% 30.00%
Debt/Equity ratio 0.07 0.07
Cost of debt 5.00% 5.00%
After-tax WACC 12.2% 15.2%
Selected WACC 13.7%

TCIFINANCE.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 TCIFINANCE.NS:

cost_of_equity (14.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.