THOMASCOOK.NS WACC - Weighted Average Cost of Capital

The WACC of Thomas Cook (India) Ltd (THOMASCOOK.NS) is 14.2%.

The Cost of Equity of Thomas Cook (India) Ltd (THOMASCOOK.NS) is 14.55%.

The Cost of Debt of Thomas Cook (India) Ltd (THOMASCOOK.NS) is 9.85%.

	Range	Selected
Cost of equity	13.20% - 15.90%	14.55%
Tax rate	26.00% - 30.60%	28.30%
Cost of debt	7.90% - 11.80%	9.85%
WACC	12.8% - 15.5%	14.2%

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	0.76	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.20%	15.90%

Tax rate	26.00%	30.60%
Debt/Equity ratio	0.06	0.06
Cost of debt	7.90%	11.80%

After-tax WACC	12.8%	15.5%


Selected WACC	14.2%

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 (14.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.76) + 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.