JAIBALAJI.NS WACC - Weighted Average Cost of Capital

The WACC of Jai Balaji Industries Ltd (JAIBALAJI.NS) is 15.4%.

The Cost of Equity of Jai Balaji Industries Ltd (JAIBALAJI.NS) is 15.90%.

The Cost of Debt of Jai Balaji Industries Ltd (JAIBALAJI.NS) is 5.75%.

	Range	Selected
Cost of equity	14.60% - 17.20%	15.90%
Tax rate	5.20% - 16.50%	10.85%
Cost of debt	4.00% - 7.50%	5.75%
WACC	14.1% - 16.7%	15.4%

WACC

JAIBALAJI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.93	1

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.60%	17.20%

Tax rate	5.20%	16.50%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	7.50%

After-tax WACC	14.1%	16.7%


Selected WACC	15.4%

JAIBALAJI.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 JAIBALAJI.NS:

cost_of_equity (15.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.93) + 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.