Weighted Average Cost of Capital
All figures are in INR unless stated otherwise.
Peer comps
Debt/
Name of the Comp Country Total Debt Total Equity Tax Rate 1
Equity
M&M India 129,024.6 401,784.2 25.00% 32.11%
Maruti Suzuki India 87.0 391,116.8 25.00% 0.02%
Tata Motors India 71,540.0 253,909.2 25.00% 28.18%
Hyundai Motor I India 847.3 169,813.0 25.00% 0.50%
Average 25.00% 15.20%
Median 25.00% 14.34%
Cost of Debt
Pre-Tax Cost of Debt 14.29%
Tax Rate 25.00%
Post Tax Cost Of Debt 10.72%
Capital Structure
Current Target
Toatl Debt 71,540.0 21.98% 11.24%
Market Capitalization 253,909.2 78.02% 88.76%
Total Capital 325,449.2 100.00% 100.00%
Debt/ Equity 28.18% 12.66%
Notes:
1. Tax Rate is considered as Marginal Tax Rate For the Country
[Link] beta Iis based on 5 year monthly data
3. Unlevered Beta = Levered Beta/(1+(1-Tax Rate)*Debt/Equity)
[Link] Beta = Unlevered Beta*(1+(1-Tax Rate)*Debt/Equity)
Debt/ Levered Unlevered
Capital Beta 2
Beta 3
24.31% 1.34 1.08
0.02% 0.96 0.96
21.98% -0.06 -0.05
0.50% 0.00 0.00
11.70% 55.92% 49.68%
11.24% 47.85% 47.84%
Cost of Equity
Risk Free Rate 6.31%
Equity Risk Premium 9.03%
Levered Beta 4 0.52
Cost Of Equity 11.04%
Levered Beta
Comps Median Unlevered Beta 0.48
Target Debt/ Equity 12.66%
Tax Rate 25.00%
Levered Beta 0.52
Weighted Average Cost of Capital
Cost of Equity 11.04%
Equity Weight 88.76%
Cost of Debt 10.72%
Debt Weight 11.24%
WACC 11.00%
[Link]. Name CMP Rs. Mar Cap [Link]. Debt / Eq Debt [Link].
1M&M 3231 401784.17 167.00% 129024.58
2 Maruti Suzuki 12440 391116.79 0.00% 87
3 Tata Motors 689.65 253909.19 62.00% 71540
4 Hyundai Motor I 2089.9 169812.95 5.00% 847.29
debt/
[Link]. Name CMP Rs. Mar Cap [Link]. Tax Debt / Eq Debt [Link]. equity
1M&M 3231 401784.17 25.00% 167.00% 129024.58 32.11%
2 Maruti Suzuki 12440 391116.79 25.00% 0.00% 87 0.02%
3 Tata Motors 689.65 253909.19 25.00% 62.00% 71540 28.18%
4 Hyundai Motor I 2089.9 169812.95 25.00% 5.00% 847.29 0.50%
Average 304155.775 25.00% 58.50% 50374.7175 15.20%
Median 322512.99 25.00% 33.50% 36193.645 14.34%
kd ke
pretax 14.29% risk free rate
tax 25% equity risk premium
post tax 10.72% levered beta
ke
Capital Structure
Current Target Comps Median Unlevered Beta
Toatl Debt 71540.00 21.98% 11.24% Target Debt/ Equity
Market Capitalization 253909.19 78.02% 88.76% Tax Rate
Total Capital 325449.19 100.00% 100.00% Levered Beta
Debt/ Equity 28.18% 12.66%
Weighted Average Cost of Capital
Cost of Equity
Equity Weight
Cost of Debt
Debt Weight
WACC
debt/ Levered unlevered
capital Beta 1
beta
24.31% 1.34 1.08
0.02% 0.96 0.96
21.98% 0.26 0.21
0.50% 0.00 0.00
11.70% 0.64 0.57
11.24% 0.61 0.59
6.31%
9.03%
0.64
12.10%
0.59
12.66%
25.00%
0.64
st of Capital
12.10%
88.76%
10.72%
11.24%
11.94%
Regression Beta- 2 Year weekly
Tata Motors Ltd. Nifty50 Weekly Returns
Date Closing Price Return Closing Price Return
17-07-2023 616.6 19,745.00
24-07-2023 625.9 1.50% 19,646.05 -0.50%
31-07-2023 605.6 -3.25% 19,566.35 -0.41%
07-08-2023 602.8 -0.46% 19,428.30 -0.71%
14-08-2023 606.7 0.66% 19,310.15 -0.61%
21-08-2023 596.6 -1.67% 19,251.50 -0.30%
28-08-2023 602.3 0.95% 19,435.30 0.95%
04-09-2023 618.0 2.61% 19,819.50 1.98%
11-09-2023 624.9 1.12% 20,192.35 1.88%
18-09-2023 612.0 -2.06% 19,905.25 -1.42%
25-09-2023 621.1 1.49% 19,638.30 -1.34%
02-10-2023 613.0 -1.31% 19,653.50 0.08%
09-10-2023 657.4 7.24% 19,751.00 0.50%
16-10-2023 653.0 -0.67% 19,542.65 -1.05%
23-10-2023 631.3 -3.32% 19,047.25 -2.53%
30-10-2023 638.3 1.11% 19,230.60 0.96%
06-11-2023 644.0 0.90% 19,425.35 1.01%
13-11-2023 671.0 4.19% 19,731.80 1.58%
20-11-2023 663.8 -1.08% 19,794.70 0.32%
27-11-2023 695.4 4.76% 20,267.90 2.39%
04-12-2023 704.2 1.27% 20,969.40 3.46%
11-12-2023 721.7 2.48% 21,654.95 3.27%
18-12-2023 714.0 -1.06% 21,349.40 -1.41%
25-12-2023 769.3 7.75% 21,731.40 1.79%
1/1/2024 779.0 1.25% 21,710.80 -0.09%
08-01-2024 804.3 3.25% 21,894.55 0.85%
15-01-2024 807.0 0.34% 21,622.40 -1.24%
22-01-2024 799.6 -0.92% 21,352.60 -1.25%
29-01-2024 865.9 8.30% 21,383.80 0.15%
05-02-2024 901.6 4.11% 21,782.50 1.86%
12-02-2024 925.0 2.60% 22,004.70 1.02%
19-02-2024 923.4 -0.17% 22,104.00 0.45%
26-02-2024 973.9 5.47% 22,338.75 1.06%
04-03-2024 1,024.1 5.15% 22,493.55 0.69%
11-03-2024 932.4 -8.96% 22,023.35 -2.09%
18-03-2024 965.2 3.52% 22,096.75 0.33%
25-03-2024 978.5 1.37% 22,326.90 1.04%
01-04-2024 992.3 1.42% 22,513.70 0.84%
08-04-2024 1,003.5 1.12% 22,519.40 0.03%
22-04-2024 949.1 -5.42% 22,187.00 -1.48%
29-04-2024 984.7 3.75% 22,475.85 1.30%
06-05-2024 999.0 1.45% 22,055.20 -1.87%
13-05-2024 1,031.5 3.26% 22,106.15 0.23%
20-05-2024 939.0 -8.97% 22,997.10 4.03%
27-05-2024 946.7 0.82% 22,530.70 -2.03%
03-06-2024 909.4 -3.94% 23,290.15 3.37%
10-06-2024 956.2 5.15% 23,206.50 -0.36%
17-06-2024 978.9 2.37% 23,501.10 1.27%
24-06-2024 952.9 -2.66% 24,010.60 2.17%
01-07-2024 981.7 3.02% 24,323.85 1.30%
08-07-2024 985.2 0.36% 24,502.15 0.73%
15-07-2024 1,007.9 2.30% 24,530.90 0.12%
22-07-2024 981.5 -2.63% 24,834.85 1.24%
29-07-2024 1,108.9 12.98% 24,717.70 -0.47%
05-08-2024 1,087.6 -1.92% 24,367.50 -1.42%
12-08-2024 1,058.4 -2.68% 24,541.15 0.71%
19-08-2024 1,089.4 2.94% 24,823.15 1.15%
26-08-2024 1,075.7 -1.26% 25,235.90 1.66%
02-09-2024 1,099.9 2.26% 24,852.15 -1.52%
09-09-2024 1,039.7 -5.48% 25,396.50 2.19%
16-09-2024 983.6 -5.39% 25,790.95 1.55%
23-09-2024 962.9 -2.11% 25,175.95 -2.38%
30-09-2024 983.9 2.18% 25,015.35 -0.64%
07-10-2024 922.8 -6.22% 24,964.25 -0.20%
14-10-2024 923.0 0.03% 25,084.70 0.48%
21-10-2024 902.3 -2.24% 24,188.00 -3.57%
28-10-2024 857.0 -5.02% 24,308.35 0.50%
04-11-2024 836.4 -2.40% 24,084.35 -0.92%
11-11-2024 798.8 -4.49% 23,532.70 -2.29%
18-11-2024 767.7 -3.90% 23,907.25 1.59%
25-11-2024 784.5 2.20% 24,131.10 0.94%
02-12-2024 780.1 -0.56% 24,677.80 2.27%
09-12-2024 809.8 3.80% 24,768.30 0.37%
16-12-2024 783.9 -3.20% 23,587.50 -4.77%
23-12-2024 744.2 -5.07% 23,813.40 0.96%
30-12-2024 717.8 -3.54% 23,813.40 0.00%
06-01-2025 783.7 9.17% 23,231.40 -2.44%
13-01-2025 767.9 -2.02% 23,023.00 -0.90%
20-01-2025 772.8 0.64% 23,125.35 0.44%
27-01-2025 727.6 -5.84% 23,312.00 0.81%
03-02-2025 700.1 -3.79% 23,559.65 1.06%
10-02-2025 700.5 0.06% 22,929.55 -2.67%
17-02-2025 674.5 -3.72% 22,214.70 -3.12%
24-02-2025 667.2 -1.08% 22,420.90 0.93%
03-03-2025 615.3 -7.78% 22,465.80 0.20%
10-03-2025 642.9 4.50% 23,500.40 4.61%
17-03-2025 649.8 1.07% 23,400.40 -0.43%
24-03-2025 696.9 7.24% 22,828.55 -2.44%
31-03-2025 668.3 -4.10% 22,904.45 0.33%
07-04-2025 608.6 -8.93% 24,472.35 6.85%
14-04-2025 590.0 -3.06% 24,539.40 0.27%
21-04-2025 616.2 4.44% 24,539.40 0.00%
28-04-2025 649.3 5.37% 24,346.70 -0.79%
05-05-2025 646.3 -0.46% 24,831.35 1.99%
12-05-2025 702.5 8.69% 25,019.80 0.76%
19-05-2025 724.5 3.13% 24,853.15 -0.67%
26-05-2025 712.0 -1.72% 24,750.70 -0.41%
02-06-2025 713.3 0.18% 25,003.05 1.02%
09-06-2025 705.2 -1.13% 24,718.00 -1.14%
16-06-2025 712.1 0.97% 25,112.40 1.60%
23-06-2025 676.1 -5.05% 25,637.80 2.09%
30-06-2025 686.7 1.57% 25,461.00 -0.69%
7/7/2025 689.0 0.33% 25,149.85 -1.22%
14-07-2025 681.6 -1.07% 24,968.40 -0.72%
Beta Drifting
Levered Raw Beta -0.06 Beta 1 -0.06
Raw Beta Weight 75.00% Beta 2
-0.06
Market Beta 1.00 Beta 3 -0.06
Market Beta Weight 25.00%
Adjusted Beta 0.20 SUMMARY OUTPUT
Regression Statistics
Multiple R 0.02587586
R Square 0.00066956
Adjusted R Square -0.009224801
Standard Error 0.040792827
Observations 103
ANOVA
df SS
Regression 1 0.00011260805
Residual 101 0.16806953084
Total 102 0.1681821389
Coefficients Standard Error
Intercept 0.001931504 0.00405850842
X Variable 1 -0.060095689 0.23101618231
MS F Significance F
0.000113 0.067671 0.795288
0.001664
t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
0.475915 0.635163 -0.006119 0.009982 -0.006119 0.009982
-0.260136 0.795288 -0.51837 0.398178 -0.51837 0.398178
Return on Markets
Year Annual
2000 -14.65% Average Return 15.33%
2001 -16.18% Dividend Yield 1.24% 1
2002 3.25% Total Market Return 15.33%
2003 71.90%
2004 10.68%
2005 36.34%
2006 39.83%
2007 54.77%
2008 -51.79%
2009 75.76%
2010 17.95%
2011 -24.62%
2012 27.70%
2013 6.76%
2014 31.39%
2015 -4.06%
2016 3.01%
2017 28.65%
2018 3.15%
2019 12.02%
2020 14.90%
2021 24.12%
2022 4.32%
2023 19.42%
2024 8.75%
