TITAN.NS WACC - Weighted Average Cost of Capital

The WACC of Titan Company Ltd (TITAN.NS) is 12.4%.

The Cost of Equity of Titan Company Ltd (TITAN.NS) is 12.75%.

The Cost of Debt of Titan Company Ltd (TITAN.NS) is 7.00%.

	Range	Selected
Cost of equity	10.90% - 14.60%	12.75%
Tax rate	25.60% - 26.40%	26.00%
Cost of debt	6.40% - 7.60%	7.00%
WACC	10.7% - 14.2%	12.4%

WACC

TITAN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.49	0.73

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	14.60%

Tax rate	25.60%	26.40%
Debt/Equity ratio	0.05	0.05
Cost of debt	6.40%	7.60%

After-tax WACC	10.7%	14.2%


Selected WACC	12.4%

TITAN.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 TITAN.NS:

cost_of_equity (12.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.49) + 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.