TRIDENT.NS WACC - Weighted Average Cost of Capital

The WACC of Trident Ltd (TRIDENT.NS) is 14.5%.

The Cost of Equity of Trident Ltd (TRIDENT.NS) is 15.60%.

The Cost of Debt of Trident Ltd (TRIDENT.NS) is 7.90%.

	Range	Selected
Cost of equity	14.50% - 16.70%	15.60%
Tax rate	23.70% - 24.40%	24.05%
Cost of debt	6.70% - 9.10%	7.90%
WACC	13.4% - 15.5%	14.5%

WACC

TRIDENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.92	0.95

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	16.70%

Tax rate	23.70%	24.40%
Debt/Equity ratio	0.13	0.13
Cost of debt	6.70%	9.10%

After-tax WACC	13.4%	15.5%


Selected WACC	14.5%

TRIDENT.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 TRIDENT.NS:

cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.