TINPLATE.NS WACC - Weighted Average Cost of Capital

The WACC of Tinplate Company of India Ltd (TINPLATE.NS) is 16.0%.

The Cost of Equity of Tinplate Company of India Ltd (TINPLATE.NS) is 16.05%.

The Cost of Debt of Tinplate Company of India Ltd (TINPLATE.NS) is 7.90%.

	Range	Selected
Cost of equity	14.90% - 17.20%	16.05%
Tax rate	25.40% - 25.80%	25.60%
Cost of debt	7.90% - 7.90%	7.90%
WACC	14.9% - 17.2%	16.0%

WACC

TINPLATE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.97	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	17.20%

Tax rate	25.40%	25.80%
Debt/Equity ratio	0	0
Cost of debt	7.90%	7.90%

After-tax WACC	14.9%	17.2%


Selected WACC	16.0%

TINPLATE.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 TINPLATE.NS:

cost_of_equity (16.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.97) + 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.