TEJASNET.NS WACC - Weighted Average Cost of Capital

The WACC of Tejas Networks Ltd (TEJASNET.NS) is 22.2%.

The Cost of Equity of Tejas Networks Ltd (TEJASNET.NS) is 14.55%.

The Cost of Debt of Tejas Networks Ltd (TEJASNET.NS) is 71.25%.

	Range	Selected
Cost of equity	12.00% - 17.10%	14.55%
Tax rate	34.80% - 36.50%	35.65%
Cost of debt	7.00% - 135.50%	71.25%
WACC	10.1% - 34.3%	22.2%

WACC

TEJASNET.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	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.00%	17.10%

Tax rate	34.80%	36.50%
Debt/Equity ratio	0.33	0.33
Cost of debt	7.00%	135.50%

After-tax WACC	10.1%	34.3%


Selected WACC	22.2%

TEJASNET.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 TEJASNET.NS:

cost_of_equity (14.55%) = 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.