THOMASCOTT.NS WACC - Weighted Average Cost of Capital

The WACC of Thomas Scott (India) Ltd (THOMASCOTT.NS) is 23.0%.

The Cost of Equity of Thomas Scott (India) Ltd (THOMASCOTT.NS) is 13.55%.

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

	Range	Selected
Cost of equity	11.90% - 15.20%	13.55%
Tax rate	7.30% - 13.80%	10.55%
Cost of debt	7.80% - 847.90%	427.85%
WACC	11.8% - 34.3%	23.0%

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	0.6	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.90%	15.20%

Tax rate	7.30%	13.80%
Debt/Equity ratio	0.03	0.03
Cost of debt	7.80%	847.90%

After-tax WACC	11.8%	34.3%


Selected WACC	23.0%

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 (13.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.6) + 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.