538092.BO WACC - Weighted Average Cost of Capital

The WACC of Joonktollee Tea & Industries Ltd (538092.BO) is 16.3%.

The Cost of Equity of Joonktollee Tea & Industries Ltd (538092.BO) is 16.25%.

The Cost of Debt of Joonktollee Tea & Industries Ltd (538092.BO) is 18.90%.

	Range	Selected
Cost of equity	14.50% - 18.00%	16.25%
Tax rate	12.60% - 14.10%	13.35%
Cost of debt	10.90% - 26.90%	18.90%
WACC	12.3% - 20.2%	16.3%

WACC

538092.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.92	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.50%	18.00%

Tax rate	12.60%	14.10%
Debt/Equity ratio	0.79	0.79
Cost of debt	10.90%	26.90%

After-tax WACC	12.3%	20.2%


Selected WACC	16.3%

538092.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 538092.BO:

cost_of_equity (16.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.92) + 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.