TTL.NS WACC - Weighted Average Cost of Capital

The WACC of T T Ltd (TTL.NS) is 12.9%.

The Cost of Equity of T T Ltd (TTL.NS) is 12.95%.

The Cost of Debt of T T Ltd (TTL.NS) is 18.05%.

	Range	Selected
Cost of equity	12.10% - 13.80%	12.95%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	9.20% - 26.90%	18.05%
WACC	10.9% - 14.9%	12.9%

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	0.63	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.10%	13.80%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.28	0.28
Cost of debt	9.20%	26.90%

After-tax WACC	10.9%	14.9%


Selected WACC	12.9%

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 (12.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.63) + 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.