TRIVENI.NS WACC - Weighted Average Cost of Capital

The WACC of Triveni Engineering and Industries Ltd (TRIVENI.NS) is 15.8%.

The Cost of Equity of Triveni Engineering and Industries Ltd (TRIVENI.NS) is 17.55%.

The Cost of Debt of Triveni Engineering and Industries Ltd (TRIVENI.NS) is 6.40%.

	Range	Selected
Cost of equity	15.50% - 19.60%	17.55%
Tax rate	21.50% - 25.60%	23.55%
Cost of debt	4.70% - 8.10%	6.40%
WACC	13.9% - 17.8%	15.8%

WACC

TRIVENI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.04	1.27

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.50%	19.60%

Tax rate	21.50%	25.60%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.70%	8.10%

After-tax WACC	13.9%	17.8%


Selected WACC	15.8%

TRIVENI.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 TRIVENI.NS:

cost_of_equity (17.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.04) + 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.