507981.BO WACC - Weighted Average Cost of Capital

The WACC of Jindal Hotels Ltd (507981.BO) is 12.0%.

The Cost of Equity of Jindal Hotels Ltd (507981.BO) is 14.80%.

The Cost of Debt of Jindal Hotels Ltd (507981.BO) is 12.10%.

	Range	Selected
Cost of equity	13.10% - 16.50%	14.80%
Tax rate	25.00% - 29.70%	27.35%
Cost of debt	8.80% - 15.40%	12.10%
WACC	10.2% - 13.9%	12.0%

WACC

507981.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.74	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.10%	16.50%

Tax rate	25.00%	29.70%
Debt/Equity ratio	0.81	0.81
Cost of debt	8.80%	15.40%

After-tax WACC	10.2%	13.9%


Selected WACC	12.0%

507981.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 507981.BO:

cost_of_equity (14.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.74) + 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.