JASH.NS WACC - Weighted Average Cost of Capital

The WACC of Jash Engineering Ltd (JASH.NS) is 15.8%.

The Cost of Equity of Jash Engineering Ltd (JASH.NS) is 16.15%.

The Cost of Debt of Jash Engineering Ltd (JASH.NS) is 10.30%.

	Range	Selected
Cost of equity	14.90% - 17.40%	16.15%
Tax rate	12.80% - 17.10%	14.95%
Cost of debt	7.90% - 12.70%	10.30%
WACC	14.5% - 17.1%	15.8%

WACC

JASH.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.97	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.90%	17.40%

Tax rate	12.80%	17.10%
Debt/Equity ratio	0.05	0.05
Cost of debt	7.90%	12.70%

After-tax WACC	14.5%	17.1%


Selected WACC	15.8%

JASH.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 JASH.NS:

cost_of_equity (16.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.97) + 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.