TIMETECHNO.NS WACC - Weighted Average Cost of Capital

The WACC of Time Technoplast Ltd (TIMETECHNO.NS) is 15.3%.

The Cost of Equity of Time Technoplast Ltd (TIMETECHNO.NS) is 16.25%.

The Cost of Debt of Time Technoplast Ltd (TIMETECHNO.NS) is 9.50%.

	Range	Selected
Cost of equity	14.50% - 18.00%	16.25%
Tax rate	26.00% - 26.30%	26.15%
Cost of debt	7.90% - 11.10%	9.50%
WACC	13.6% - 17.0%	15.3%

WACC

TIMETECHNO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.92	1.09

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	18.00%

Tax rate	26.00%	26.30%
Debt/Equity ratio	0.12	0.12
Cost of debt	7.90%	11.10%

After-tax WACC	13.6%	17.0%


Selected WACC	15.3%

TIMETECHNO.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 TIMETECHNO.NS:

cost_of_equity (16.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.