TTKHLTCARE.NS WACC - Weighted Average Cost of Capital

The WACC of TTK Healthcare Ltd (TTKHLTCARE.NS) is 18.0%.

The Cost of Equity of TTK Healthcare Ltd (TTKHLTCARE.NS) is 18.20%.

The Cost of Debt of TTK Healthcare Ltd (TTKHLTCARE.NS) is 10.35%.

	Range	Selected
Cost of equity	16.30% - 20.10%	18.20%
Tax rate	26.70% - 31.20%	28.95%
Cost of debt	7.50% - 13.20%	10.35%
WACC	16.1% - 20.0%	18.0%

WACC

TTKHLTCARE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.13	1.31

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.30%	20.10%

Tax rate	26.70%	31.20%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	13.20%

After-tax WACC	16.1%	20.0%


Selected WACC	18.0%

TTKHLTCARE.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 TTKHLTCARE.NS:

cost_of_equity (18.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.13) + 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.