TI.NS WACC - Weighted Average Cost of Capital

The WACC of Tilaknagar Industries Ltd (TI.NS) is 14.3%.

The Cost of Equity of Tilaknagar Industries Ltd (TI.NS) is 14.45%.

The Cost of Debt of Tilaknagar Industries Ltd (TI.NS) is 6.85%.

	Range	Selected
Cost of equity	12.90% - 16.00%	14.45%
Tax rate	-% - 0.20%	0.10%
Cost of debt	6.20% - 7.50%	6.85%
WACC	12.8% - 15.9%	14.3%

WACC

TI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.72	0.88

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.90%	16.00%

Tax rate	-%	0.20%
Debt/Equity ratio	0.02	0.02
Cost of debt	6.20%	7.50%

After-tax WACC	12.8%	15.9%


Selected WACC	14.3%

TI.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 TI.NS:

cost_of_equity (14.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.