JAIBALAJI.NS
Jai Balaji Industries Ltd
Price:  
126.63 
INR
Volume:  
1,577,451.00
India | Metals & Mining
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JAIBALAJI.NS WACC - Weighted Average Cost of Capital

The WACC of Jai Balaji Industries Ltd (JAIBALAJI.NS) is 15.8%.

The Cost of Equity of Jai Balaji Industries Ltd (JAIBALAJI.NS) is 16.25%.
The Cost of Debt of Jai Balaji Industries Ltd (JAIBALAJI.NS) is 5.75%.

Range Selected
Cost of equity 14.70% - 17.80% 16.25%
Tax rate 5.20% - 16.50% 10.85%
Cost of debt 4.00% - 7.50% 5.75%
WACC 14.3% - 17.4% 15.8%
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 0.95 1.07
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.70% 17.80%
Tax rate 5.20% 16.50%
Debt/Equity ratio 0.04 0.04
Cost of debt 4.00% 7.50%
After-tax WACC 14.3% 17.4%
Selected WACC 15.8%

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 (16.25%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.