TRIDENT.NS WACC - Weighted Average Cost of Capital

The WACC of Trident Ltd (TRIDENT.NS) is 14.1%.

The Cost of Equity of Trident Ltd (TRIDENT.NS) is 15.20%.

The Cost of Debt of Trident Ltd (TRIDENT.NS) is 7.85%.

	Range	Selected
Cost of equity	13.50% - 16.90%	15.20%
Tax rate	24.70% - 25.80%	25.25%
Cost of debt	7.60% - 8.10%	7.85%
WACC	12.6% - 15.7%	14.1%

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	0.8	0.97

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	16.90%

Tax rate	24.70%	25.80%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.60%	8.10%

After-tax WACC	12.6%	15.7%


Selected WACC	14.1%

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 (15.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.