506910.BO WACC - Weighted Average Cost of Capital
The WACC of Jaysynth Dyestuff India Ltd (506910.BO) is 15.0%.
| Range | Selected | |
| Cost of equity | 13.5% - 16.6% | 15.05% |
| Tax rate | 26.1% - 27.5% | 26.8% |
| Cost of debt | 7.5% - 7.5% | 7.5% |
| WACC | 13.4% - 16.5% | 15.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.8 | 0.94 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 13.5% | 16.6% |
| Tax rate | 26.1% | 27.5% |
| Debt/Equity ratio | 0.01 | 0.01 |
| Cost of debt | 7.5% | 7.5% |
| After-tax WACC | 13.4% | 16.5% |
| Selected WACC | 15.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| 506910.BO | Jaysynth Dyestuff India Ltd | 0.01 | 1.26 | 1.26 |
| 507645.BO | Polson Ltd | 0.25 | 0.82 | 0.69 |
| 523586.BO | Indian Toners & Developers Ltd | 0.01 | 1.42 | 1.41 |
| 524440.BO | Camex Ltd | 0.2 | 1.36 | 1.19 |
| 524717.BO | Titan Biotech Ltd | 0.02 | 0.18 | 0.17 |
| 530125.BO | Samrat Pharmachem Ltd | 0.07 | 0.73 | 0.69 |
| 530627.BO | Vipul Organics Ltd | 0.11 | 1.12 | 1.03 |
| 531109.BO | Ishan Dyes and Chemicals Ltd | 0.25 | 0.96 | 0.81 |
| AMBICAAGAR.NS | Ambica Agarbathies Aroma & Industries Ltd | 1.32 | 0.53 | 0.27 |
| MAHICKRA.NS | Mahickra Chemicals Ltd | 0.11 | 0.31 | 0.29 |
| Low | High | |
| Unlevered beta | 0.69 | 0.9 |
| Relevered beta | 0.7 | 0.91 |
| Adjusted relevered beta | 0.8 | 0.94 |
506910.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 506910.BO:
cost_of_equity (15.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.