TITAN.NS WACC - Weighted Average Cost of Capital

The WACC of Titan Company Ltd (TITAN.NS) is 13.1%.

The Cost of Equity of Titan Company Ltd (TITAN.NS) is 13.50%.

The Cost of Debt of Titan Company Ltd (TITAN.NS) is 6.50%.

	Range	Selected
Cost of equity	11.80% - 15.20%	13.50%
Tax rate	25.60% - 26.50%	26.05%
Cost of debt	5.10% - 7.90%	6.50%
WACC	11.4% - 14.8%	13.1%

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	0.59	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.80%	15.20%

Tax rate	25.60%	26.50%
Debt/Equity ratio	0.05	0.05
Cost of debt	5.10%	7.90%

After-tax WACC	11.4%	14.8%


Selected WACC	13.1%

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 (13.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.59) + 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.