506910.BO WACC - Weighted Average Cost of Capital

The WACC of Jaysynth Dyestuff India Ltd (506910.BO) is 14.7%.

The Cost of Equity of Jaysynth Dyestuff India Ltd (506910.BO) is 14.75%.

The Cost of Debt of Jaysynth Dyestuff India Ltd (506910.BO) is 7.50%.

	Range	Selected
Cost of equity	13.30% - 16.20%	14.75%
Tax rate	26.10% - 27.50%	26.80%
Cost of debt	7.50% - 7.50%	7.50%
WACC	13.2% - 16.1%	14.7%

WACC

506910.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.77	0.9

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.30%	16.20%

Tax rate	26.10%	27.50%
Debt/Equity ratio	0.01	0.01
Cost of debt	7.50%	7.50%

After-tax WACC	13.2%	16.1%


Selected WACC	14.7%

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 (14.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.77) + 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.