TEJASNET.NS WACC - Weighted Average Cost of Capital

The WACC of Tejas Networks Ltd (TEJASNET.NS) is 20.2%.

The Cost of Equity of Tejas Networks Ltd (TEJASNET.NS) is 17.00%.

The Cost of Debt of Tejas Networks Ltd (TEJASNET.NS) is 70.10%.

	Range	Selected
Cost of equity	14.80% - 19.20%	17.00%
Tax rate	36.70% - 40.90%	38.80%
Cost of debt	8.10% - 132.10%	70.10%
WACC	13.5% - 26.9%	20.2%

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	0.95	1.21

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.80%	19.20%

Tax rate	36.70%	40.90%
Debt/Equity ratio	0.15	0.15
Cost of debt	8.10%	132.10%

After-tax WACC	13.5%	26.9%


Selected WACC	20.2%

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 (17.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.