TIRUPATI.NS WACC - Weighted Average Cost of Capital

The WACC of Shree Tirupati Balajee FIBC Ltd (TIRUPATI.NS) is 12.5%.

The Cost of Equity of Shree Tirupati Balajee FIBC Ltd (TIRUPATI.NS) is 13.50%.

The Cost of Debt of Shree Tirupati Balajee FIBC Ltd (TIRUPATI.NS) is 8.65%.

	Range	Selected
Cost of equity	12.50% - 14.50%	13.50%
Tax rate	19.70% - 21.20%	20.45%
Cost of debt	8.60% - 8.70%	8.65%
WACC	11.7% - 13.3%	12.5%

WACC

TIRUPATI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.68	0.71

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	14.50%

Tax rate	19.70%	21.20%
Debt/Equity ratio	0.18	0.18
Cost of debt	8.60%	8.70%

After-tax WACC	11.7%	13.3%


Selected WACC	12.5%

TIRUPATI.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 TIRUPATI.NS:

cost_of_equity (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.