THOMASCOTT.NS
Thomas Scott (India) Ltd
Price:  
395.65 
INR
Volume:  
206,486.00
India | Specialty Retail
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THOMASCOTT.NS WACC - Weighted Average Cost of Capital

The WACC of Thomas Scott (India) Ltd (THOMASCOTT.NS) is 24.9%.

The Cost of Equity of Thomas Scott (India) Ltd (THOMASCOTT.NS) is 13.45%.
The Cost of Debt of Thomas Scott (India) Ltd (THOMASCOTT.NS) is 427.85%.

Range Selected
Cost of equity 11.80% - 15.10% 13.45%
Tax rate 7.30% - 13.80% 10.55%
Cost of debt 7.80% - 847.90% 427.85%
WACC 11.6% - 38.2% 24.9%
WACC

THOMASCOTT.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.59 0.78
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.80% 15.10%
Tax rate 7.30% 13.80%
Debt/Equity ratio 0.03 0.03
Cost of debt 7.80% 847.90%
After-tax WACC 11.6% 38.2%
Selected WACC 24.9%

THOMASCOTT.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 THOMASCOTT.NS:

cost_of_equity (13.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.