TDPOWERSYS.NS WACC - Weighted Average Cost of Capital
The WACC of TD Power Systems Ltd (TDPOWERSYS.NS) is 11.1%.
| Range | Selected | |
| Cost of equity | 9.8% - 12.5% | 11.15% |
| Tax rate | 24.1% - 24.9% | 24.5% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 9.8% - 12.5% | 11.1% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.35 | 0.49 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.8% | 12.5% |
| Tax rate | 24.1% | 24.9% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 9.8% | 12.5% |
| Selected WACC | 11.1% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TDPOWERSYS.NS | TD Power Systems Ltd | 0 | 2.05 | 2.05 |
| 2188.HK | China Titans Energy Technology Group Co Ltd | 0.55 | 0.06 | 0.05 |
| 517467.BO | Marsons Ltd | 0 | -1.06 | -1.06 |
| 531215.BO | Rts Power Corporation Ltd | 0.15 | 0.61 | 0.54 |
| 540358.BO | RMC Switchgears Ltd | 0.06 | 0.03 | 0.03 |
| 540614.BO | G G Engineering Ltd | 0.02 | 1.07 | 1.05 |
| CMICABLES.NS | CMI Ltd | 76.91 | 0.09 | 0 |
| INDLMETER.NS | IMP Powers Ltd | 52.95 | 1.18 | 0.03 |
| TARAPUR.NS | Tarapur Transformers Ltd | 0.19 | 1.58 | 1.38 |
| TRIL.NS | Transformers and Rectifiers (India) Ltd | 0.02 | 0.04 | 0.04 |
| Low | High | |
| Unlevered beta | 0.03 | 0.24 |
| Relevered beta | 0.03 | 0.24 |
| Adjusted relevered beta | 0.35 | 0.49 |
TDPOWERSYS.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 TDPOWERSYS.NS:
cost_of_equity (11.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.