TFCILTD.NS
Tourism Finance Corporation of India Ltd
Price:  
205.81 
INR
Volume:  
2,118,911.00
India | Diversified Financial Services
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TFCILTD.NS WACC - Weighted Average Cost of Capital

The WACC of Tourism Finance Corporation of India Ltd (TFCILTD.NS) is 8.4%.

The Cost of Equity of Tourism Finance Corporation of India Ltd (TFCILTD.NS) is 10.60%.
The Cost of Debt of Tourism Finance Corporation of India Ltd (TFCILTD.NS) is 5.00%.

Range Selected
Cost of equity 9.80% - 11.40% 10.60%
Tax rate 19.40% - 19.70% 19.55%
Cost of debt 5.00% - 5.00% 5.00%
WACC 7.8% - 8.9% 8.4%
WACC

TFCILTD.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.35 0.38
Additional risk adjustments 0.0% 0.5%
Cost of equity 9.80% 11.40%
Tax rate 19.40% 19.70%
Debt/Equity ratio 0.51 0.51
Cost of debt 5.00% 5.00%
After-tax WACC 7.8% 8.9%
Selected WACC 8.4%

TFCILTD.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 TFCILTD.NS:

cost_of_equity (10.60%) = 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.