THANGAMAYL.NS WACC - Weighted Average Cost of Capital

The WACC of Thanga Mayil Jewellery Ltd (THANGAMAYL.NS) is 12.8%.

The Cost of Equity of Thanga Mayil Jewellery Ltd (THANGAMAYL.NS) is 13.30%.

The Cost of Debt of Thanga Mayil Jewellery Ltd (THANGAMAYL.NS) is 7.75%.

	Range	Selected
Cost of equity	11.00% - 15.60%	13.30%
Tax rate	25.90% - 26.00%	25.95%
Cost of debt	7.60% - 7.90%	7.75%
WACC	10.7% - 15.0%	12.8%

WACC

THANGAMAYL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.5	0.83

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	15.60%

Tax rate	25.90%	26.00%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.60%	7.90%

After-tax WACC	10.7%	15.0%


Selected WACC	12.8%

THANGAMAYL.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 THANGAMAYL.NS:

cost_of_equity (13.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.5) + 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.