TGR.L WACC - Weighted Average Cost of Capital

The WACC of Tirupati Graphite PLC (TGR.L) is 12.1%.

The Cost of Equity of Tirupati Graphite PLC (TGR.L) is 12.65%.

The Cost of Debt of Tirupati Graphite PLC (TGR.L) is 11.45%.

	Range	Selected
Cost of equity	10.80% - 14.50%	12.65%
Tax rate	1.80% - 2.30%	2.05%
Cost of debt	7.00% - 15.90%	11.45%
WACC	9.5% - 14.8%	12.1%

WACC

TGR.L WACC calculation

Category	Low	High

Long-term bond rate	4.0%	4.5%
Equity market risk premium	6.0%	7.0%
Adjusted beta	1.14	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	14.50%

Tax rate	1.80%	2.30%
Debt/Equity ratio	0.5	0.5
Cost of debt	7.00%	15.90%

After-tax WACC	9.5%	14.8%


Selected WACC	12.1%

TGR.L'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 TGR.L:

cost_of_equity (12.65%) = risk_free_rate (4.25%) + equity_risk_premium (6.50%) * adjusted_beta (1.14) + 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.