TTL.NS WACC - Weighted Average Cost of Capital

The WACC of T T Ltd (TTL.NS) is 12.5%.

The Cost of Equity of T T Ltd (TTL.NS) is 13.45%.

The Cost of Debt of T T Ltd (TTL.NS) is 13.90%.

	Range	Selected
Cost of equity	12.30% - 14.60%	13.45%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	9.20% - 18.60%	13.90%
WACC	10.9% - 14.2%	12.5%

WACC

TTL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.66	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.30%	14.60%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.33	0.33
Cost of debt	9.20%	18.60%

After-tax WACC	10.9%	14.2%


Selected WACC	12.5%

TTL.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 TTL.NS:

cost_of_equity (13.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.66) + 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.