540651.BO
Jigar Cables Ltd
Price:  
66.00 
INR
Volume:  
2,000.00
India | Electrical Equipment
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

540651.BO WACC - Weighted Average Cost of Capital

The WACC of Jigar Cables Ltd (540651.BO) is 12.8%.

The Cost of Equity of Jigar Cables Ltd (540651.BO) is 13.15%.
The Cost of Debt of Jigar Cables Ltd (540651.BO) is 11.75%.

Range Selected
Cost of equity 11.50% - 14.80% 13.15%
Tax rate 25.10% - 26.50% 25.80%
Cost of debt 10.00% - 13.50% 11.75%
WACC 11.2% - 14.5% 12.8%
WACC

540651.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 0.75
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.50% 14.80%
Tax rate 25.10% 26.50%
Debt/Equity ratio 0.08 0.08
Cost of debt 10.00% 13.50%
After-tax WACC 11.2% 14.5%
Selected WACC 12.8%

540651.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 540651.BO:

cost_of_equity (13.15%) = 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.