TIMESGTY.NS WACC - Weighted Average Cost of Capital
The WACC of Times Guaranty Ltd (TIMESGTY.NS) is 7.9%.
| Range | Selected | |
| Cost of equity | 9.2% - 14.4% | 11.8% |
| Tax rate | 17.8% - 19.9% | 18.85% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 6.7% - 9.2% | 7.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.28 | 0.7 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 9.2% | 14.4% |
| Tax rate | 17.8% | 19.9% |
| Debt/Equity ratio | 1 | 1 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 6.7% | 9.2% |
| Selected WACC | 7.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| TIMESGTY.NS | Times Guaranty Ltd | 1.01 | -0.34 | -0.19 |
| 506134.BO | Intellivate Capital Ventures Ltd | 0.39 | -0.82 | -0.62 |
| 511012.BO | Yamini Investments Company Ltd | 0.12 | 0.42 | 0.39 |
| 512344.BO | Aravali Securities and Finance Ltd | 0.56 | 0.07 | 0.05 |
| 530577.BO | Ladderup Finance Ltd | 0.24 | 0.3 | 0.25 |
| 531502.BO | Esaar (India) Ltd | 1.69 | -0.41 | -0.17 |
| 531515.BO | Mahan Industries Ltd | 0.29 | -0.68 | -0.55 |
| 533315.BO | Innovassynth Investments Ltd | 0.02 | 0.67 | 0.66 |
| 534732.BO | Intellivate Capital Advisors Ltd | 0.43 | -0.59 | -0.43 |
| 538180.BO | Gold Line International Finvest Ltd | 0.01 | 0.92 | 0.92 |
| JPOLYINVST.NS | Jindal Poly Investment and Finance Company Ltd | 0.03 | 1.48 | 1.45 |
| Low | High | |
| Unlevered beta | -0.17 | 0.25 |
| Relevered beta | -0.07 | 0.55 |
| Adjusted relevered beta | 0.28 | 0.7 |
TIMESGTY.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 TIMESGTY.NS:
cost_of_equity (11.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.28) + 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.