TIDEWATER.NS WACC - Weighted Average Cost of Capital
The WACC of Tide Water Oil Co India Ltd (TIDEWATER.NS) is 16.7%.
| Range | Selected | |
| Cost of equity | 15.3% - 18.1% | 16.7% |
| Tax rate | 23.5% - 23.7% | 23.6% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 15.3% - 18.1% | 16.7% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.02 | 1.1 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.3% | 18.1% |
| Tax rate | 23.5% | 23.7% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 15.3% | 18.1% |
| Selected WACC | 16.7% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TIDEWATER.NS | Tide Water Oil Co India Ltd | 0 | 1.88 | 1.88 |
| ANDHRSUGAR.NS | Andhra Sugars Ltd | 0.03 | 1.14 | 1.11 |
| BODALCHEM.NS | Bodal Chemicals Ltd | 0.95 | 1.17 | 0.68 |
| DCW.NS | DCW Ltd | 0.17 | 1.28 | 1.13 |
| ESTER.NS | Ester Industries Ltd | 0.61 | 1.71 | 1.17 |
| IGPL.NS | I G Petrochemicals Ltd | 0.19 | 1.16 | 1.02 |
| INEOSSTYRO.NS | INEOS Styrolution India Ltd | 0.02 | 1.09 | 1.07 |
| PANAMAPET.NS | Panama Petrochem Ltd | 0.02 | 1.07 | 1.06 |
| TIRUMALCHM.NS | Thirumalai Chemicals Ltd | 0.42 | 1.22 | 0.92 |
| TNPETRO.NS | Tamilnadu Petroproducts Ltd | 0.16 | 1.24 | 1.11 |
| Low | High | |
| Unlevered beta | 1.06 | 1.11 |
| Relevered beta | 1.03 | 1.15 |
| Adjusted relevered beta | 1.02 | 1.1 |
TIDEWATER.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 TIDEWATER.NS:
cost_of_equity (16.70%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.02) + 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.