THANGAMAYL.NS WACC - Weighted Average Cost of Capital

The WACC of Thanga Mayil Jewellery Ltd (THANGAMAYL.NS) is 13.0%.

The Cost of Equity of Thanga Mayil Jewellery Ltd (THANGAMAYL.NS) is 13.40%.

The Cost of Debt of Thanga Mayil Jewellery Ltd (THANGAMAYL.NS) is 7.45%.

	Range	Selected
Cost of equity	11.20% - 15.60%	13.40%
Tax rate	25.60% - 25.80%	25.70%
Cost of debt	7.30% - 7.60%	7.45%
WACC	10.9% - 15.0%	13.0%

WACC

THANGAMAYL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.52	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.20%	15.60%

Tax rate	25.60%	25.80%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.30%	7.60%

After-tax WACC	10.9%	15.0%


Selected WACC	13.0%

THANGAMAYL.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 THANGAMAYL.NS:

cost_of_equity (13.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.52) + 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.