500306.BO WACC - Weighted Average Cost of Capital

The WACC of Jaykay Enterprises Ltd (500306.BO) is 12.8%.

The Cost of Equity of Jaykay Enterprises Ltd (500306.BO) is 12.85%.

The Cost of Debt of Jaykay Enterprises Ltd (500306.BO) is 11.90%.

	Range	Selected
Cost of equity	11.00% - 14.70%	12.85%
Tax rate	4.80% - 13.50%	9.15%
Cost of debt	8.10% - 15.70%	11.90%
WACC	11.0% - 14.7%	12.8%

WACC

500306.BO 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	0.74

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.00%	14.70%

Tax rate	4.80%	13.50%
Debt/Equity ratio	0.02	0.02
Cost of debt	8.10%	15.70%

After-tax WACC	11.0%	14.7%


Selected WACC	12.8%

500306.BO'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 500306.BO:

cost_of_equity (12.85%) = 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.