THOMASCOOK.NS WACC - Weighted Average Cost of Capital

The WACC of Thomas Cook (India) Ltd (THOMASCOOK.NS) is 13.9%.

The Cost of Equity of Thomas Cook (India) Ltd (THOMASCOOK.NS) is 14.35%.

The Cost of Debt of Thomas Cook (India) Ltd (THOMASCOOK.NS) is 9.70%.

	Range	Selected
Cost of equity	13.00% - 15.70%	14.35%
Tax rate	26.00% - 42.00%	34.00%
Cost of debt	7.90% - 11.50%	9.70%
WACC	12.6% - 15.2%	13.9%

WACC

THOMASCOOK.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.74	0.84

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.00%	15.70%

Tax rate	26.00%	42.00%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.90%	11.50%

After-tax WACC	12.6%	15.2%


Selected WACC	13.9%

THOMASCOOK.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 THOMASCOOK.NS:

cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.