TPLPLASTEH.NS WACC - Weighted Average Cost of Capital

The WACC of TPL Plastech Ltd (TPLPLASTEH.NS) is 16.4%.

The Cost of Equity of TPL Plastech Ltd (TPLPLASTEH.NS) is 16.90%.

The Cost of Debt of TPL Plastech Ltd (TPLPLASTEH.NS) is 12.50%.

	Range	Selected
Cost of equity	15.10% - 18.70%	16.90%
Tax rate	21.90% - 23.30%	22.60%
Cost of debt	7.90% - 17.10%	12.50%
WACC	14.5% - 18.3%	16.4%

WACC

TPLPLASTEH.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.99	1.16

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.10%	18.70%

Tax rate	21.90%	23.30%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.90%	17.10%

After-tax WACC	14.5%	18.3%


Selected WACC	16.4%

TPLPLASTEH.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 TPLPLASTEH.NS:

cost_of_equity (16.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.99) + 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.