JAGRAN.NS WACC - Weighted Average Cost of Capital

The WACC of Jagran Prakashan Ltd (JAGRAN.NS) is 14.6%.

The Cost of Equity of Jagran Prakashan Ltd (JAGRAN.NS) is 16.00%.

The Cost of Debt of Jagran Prakashan Ltd (JAGRAN.NS) is 7.90%.

	Range	Selected
Cost of equity	14.20% - 17.80%	16.00%
Tax rate	24.90% - 26.80%	25.85%
Cost of debt	7.50% - 8.30%	7.90%
WACC	13.1% - 16.2%	14.6%

WACC

JAGRAN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.89	1.07

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.20%	17.80%

Tax rate	24.90%	26.80%
Debt/Equity ratio	0.16	0.16
Cost of debt	7.50%	8.30%

After-tax WACC	13.1%	16.2%


Selected WACC	14.6%

JAGRAN.NS'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 JAGRAN.NS:

cost_of_equity (16.00%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.