500306.BO WACC - Weighted Average Cost of Capital

The WACC of Jaykay Enterprises Ltd (500306.BO) is 12.6%.

The Cost of Equity of Jaykay Enterprises Ltd (500306.BO) is 12.65%.

The Cost of Debt of Jaykay Enterprises Ltd (500306.BO) is 10.50%.

	Range	Selected
Cost of equity	10.70% - 14.60%	12.65%
Tax rate	4.20% - 13.50%	8.85%
Cost of debt	10.50% - 10.50%	10.50%
WACC	10.7% - 14.5%	12.6%

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	0.46	0.72

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.70%	14.60%

Tax rate	4.20%	13.50%
Debt/Equity ratio	0.02	0.02
Cost of debt	10.50%	10.50%

After-tax WACC	10.7%	14.5%


Selected WACC	12.6%

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 (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.46) + 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.