JAKHARIA.NS WACC - Weighted Average Cost of Capital

The WACC of Jakharia Fabric Ltd (JAKHARIA.NS) is 12.9%.

The Cost of Equity of Jakharia Fabric Ltd (JAKHARIA.NS) is 13.65%.

The Cost of Debt of Jakharia Fabric Ltd (JAKHARIA.NS) is 7.10%.

	Range	Selected
Cost of equity	12.40% - 14.90%	13.65%
Tax rate	6.40% - 14.00%	10.20%
Cost of debt	6.10% - 8.10%	7.10%
WACC	11.7% - 14.1%	12.9%

WACC

JAKHARIA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.67	0.76

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.40%	14.90%

Tax rate	6.40%	14.00%
Debt/Equity ratio	0.11	0.11
Cost of debt	6.10%	8.10%

After-tax WACC	11.7%	14.1%


Selected WACC	12.9%

JAKHARIA.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 JAKHARIA.NS:

cost_of_equity (13.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.67) + 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.