TRIVENI.NS WACC - Weighted Average Cost of Capital

The WACC of Triveni Engineering and Industries Ltd (TRIVENI.NS) is 13.1%.

The Cost of Equity of Triveni Engineering and Industries Ltd (TRIVENI.NS) is 14.90%.

The Cost of Debt of Triveni Engineering and Industries Ltd (TRIVENI.NS) is 6.70%.

	Range	Selected
Cost of equity	12.60% - 17.20%	14.90%
Tax rate	25.80% - 26.30%	26.05%
Cost of debt	5.30% - 8.10%	6.70%
WACC	11.0% - 15.2%	13.1%

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	0.68	1.01

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.60%	17.20%

Tax rate	25.80%	26.30%
Debt/Equity ratio	0.22	0.22
Cost of debt	5.30%	8.10%

After-tax WACC	11.0%	15.2%


Selected WACC	13.1%

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 (14.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.