TCPLPACK.NS WACC - Weighted Average Cost of Capital

The WACC of TCPL Packaging Ltd (TCPLPACK.NS) is 12.1%.

The Cost of Equity of TCPL Packaging Ltd (TCPLPACK.NS) is 13.10%.

The Cost of Debt of TCPL Packaging Ltd (TCPLPACK.NS) is 9.25%.

	Range	Selected
Cost of equity	12.00% - 14.20%	13.10%
Tax rate	26.70% - 28.00%	27.35%
Cost of debt	8.30% - 10.20%	9.25%
WACC	11.0% - 13.1%	12.1%

WACC

TCPLPACK.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.62	0.68

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	14.20%

Tax rate	26.70%	28.00%
Debt/Equity ratio	0.2	0.2
Cost of debt	8.30%	10.20%

After-tax WACC	11.0%	13.1%


Selected WACC	12.1%

TCPLPACK.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 TCPLPACK.NS:

cost_of_equity (13.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.62) + 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.