TFCILTD.NS
Tourism Finance Corporation of India Ltd
Price:  
202.11 
INR
Volume:  
1,342,564
India | Diversified Financial Services

TFCILTD.NS WACC - Weighted Average Cost of Capital

The WACC of Tourism Finance Corporation of India Ltd (TFCILTD.NS) is 8.3%.

The Cost of Equity of Tourism Finance Corporation of India Ltd (TFCILTD.NS) is 10.55%.
The Cost of Debt of Tourism Finance Corporation of India Ltd (TFCILTD.NS) is 5%.

RangeSelected
Cost of equity9.7% - 11.4%10.55%
Tax rate19.4% - 19.7%19.55%
Cost of debt5.0% - 5.0%5%
WACC7.8% - 8.9%8.3%
WACC

TFCILTD.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.350.38
Additional risk adjustments0.0%0.5%
Cost of equity9.7%11.4%
Tax rate19.4%19.7%
Debt/Equity ratio
0.520.52
Cost of debt5.0%5.0%
After-tax WACC7.8%8.9%
Selected WACC8.3%

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 (10.55%) = 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.