JAMNAAUTO.NS WACC - Weighted Average Cost of Capital
The WACC of Jamna Auto Industries Ltd (JAMNAAUTO.NS) is 15.9%.
| Range | Selected | |
| Cost of equity | 15.3% - 18.4% | 16.85% |
| Tax rate | 27.1% - 27.6% | 27.35% |
| Cost of debt | 4.0% - 7.5% | 5.75% |
| WACC | 14.4% - 17.4% | 15.9% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.02 | 1.13 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 15.3% | 18.4% |
| Tax rate | 27.1% | 27.6% |
| Debt/Equity ratio | 0.08 | 0.08 |
| Cost of debt | 4.0% | 7.5% |
| After-tax WACC | 14.4% | 17.4% |
| Selected WACC | 15.9% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JAMNAAUTO.NS | Jamna Auto Industries Ltd | 0.08 | 1.54 | 1.45 |
| AUTOAXLES.NS | Automotive Axles Ltd | 0.01 | 0.93 | 0.93 |
| BANCOINDIA.NS | Banco Products (India) Ltd | 0.07 | 1.61 | 1.53 |
| FMGOETZE.NS | Federal-Mogul Goetze (India) Ltd | 0 | 0.79 | 0.79 |
| JTEKTINDIA.NS | JTEKT India Ltd | 0.03 | 1.25 | 1.22 |
| LUMAXIND.NS | Lumax Industries Ltd | 0.29 | 0.98 | 0.81 |
| LUMAXTECH.NS | Lumax AutoTechnologies Ltd | 0.19 | 1.13 | 0.99 |
| SHARDAMOTR.NS | Sharda Motor Industries Ltd | 0 | 1.53 | 1.52 |
| SHRIPISTON.NS | Shriram Pistons & Rings Ltd | 0.03 | 0.85 | 0.83 |
| SUPRAJIT.NS | Suprajit Engineering Ltd | 0.12 | 1.15 | 1.06 |
| Low | High | |
| Unlevered beta | 0.97 | 1.12 |
| Relevered beta | 1.03 | 1.19 |
| Adjusted relevered beta | 1.02 | 1.13 |
JAMNAAUTO.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 JAMNAAUTO.NS:
cost_of_equity (16.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.02) + 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.