540651.BO WACC - Weighted Average Cost of Capital

The WACC of Jigar Cables Ltd (540651.BO) is 12.9%.

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%	12.9%

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	0.07	0.07
Cost of debt	10.00%	13.50%

After-tax WACC	11.2%	14.5%


Selected WACC	12.9%

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.