TIL.NS WACC - Weighted Average Cost of Capital

The WACC of TIL Ltd (TIL.NS) is 14.5%.

The Cost of Equity of TIL Ltd (TIL.NS) is 14.70%.

The Cost of Debt of TIL Ltd (TIL.NS) is 15.50%.

	Range	Selected
Cost of equity	11.80% - 17.60%	14.70%
Tax rate	4.00% - 14.30%	9.15%
Cost of debt	7.10% - 23.90%	15.50%
WACC	10.9% - 18.1%	14.5%

WACC

TIL.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	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	17.60%

Tax rate	4.00%	14.30%
Debt/Equity ratio	0.2	0.2
Cost of debt	7.10%	23.90%

After-tax WACC	10.9%	18.1%


Selected WACC	14.5%

TIL.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 TIL.NS:

cost_of_equity (14.70%) = 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.