TEAMLEASE.NS WACC - Weighted Average Cost of Capital
The WACC of TeamLease Services Ltd (TEAMLEASE.NS) is 12.9%.
| Range | Selected | |
| Cost of equity | 11.7% - 14.4% | 13.05% |
| Tax rate | 3.8% - 7.3% | 5.55% |
| Cost of debt | 7.8% - 10.6% | 9.2% |
| WACC | 11.5% - 14.3% | 12.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.58 | 0.71 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 11.7% | 14.4% |
| Tax rate | 3.8% | 7.3% |
| Debt/Equity ratio | 0.03 | 0.03 |
| Cost of debt | 7.8% | 10.6% |
| After-tax WACC | 11.5% | 14.3% |
| Selected WACC | 12.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TEAMLEASE.NS | TeamLease Services Ltd | 0.03 | 0.47 | 0.46 |
| 2154.T | Benext Group Inc | 0.01 | 0.72 | 0.71 |
| 2180.HK | ManpowerGroup Greater China Ltd | 0.04 | 0.3 | 0.29 |
| 2462.T | LIKE Inc | 0.41 | 0.56 | 0.4 |
| 4433.T | HITO-Communications Holdings Inc | 0.57 | 0.43 | 0.28 |
| 6569.T | Nisso Corp | 0.1 | 1.27 | 1.16 |
| AARVI.NS | Aarvi Encon Ltd | 0.06 | 0.71 | 0.68 |
| AGL.NZ | Accordant Group Ltd | 3.04 | 0.14 | 0.03 |
| ASH.AX | Ashley Services Group Ltd | 0.56 | -0.74 | -0.48 |
| QUESS.NS | Quess Corp Ltd | 0.15 | 1.44 | 1.25 |
| Low | High | |
| Unlevered beta | 0.36 | 0.54 |
| Relevered beta | 0.37 | 0.57 |
| Adjusted relevered beta | 0.58 | 0.71 |
TEAMLEASE.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 TEAMLEASE.NS:
cost_of_equity (13.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.58) + 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.