517063.BO WACC - Weighted Average Cost of Capital

The WACC of Jetking Infotrain Ltd (517063.BO) is 13.1%.

The Cost of Equity of Jetking Infotrain Ltd (517063.BO) is 12.95%.

The Cost of Debt of Jetking Infotrain Ltd (517063.BO) is 22.25%.

	Range	Selected
Cost of equity	11.50% - 14.40%	12.95%
Tax rate	7.10% - 14.30%	10.70%
Cost of debt	17.60% - 26.90%	22.25%
WACC	11.6% - 14.6%	13.1%

WACC

517063.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.56	0.7

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	14.40%

Tax rate	7.10%	14.30%
Debt/Equity ratio	0.03	0.03
Cost of debt	17.60%	26.90%

After-tax WACC	11.6%	14.6%


Selected WACC	13.1%

517063.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 517063.BO:

cost_of_equity (12.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.