JAYAGROGN.NS WACC - Weighted Average Cost of Capital

The WACC of Jayant Agro-Organics Ltd (JAYAGROGN.NS) is 14.0%.

The Cost of Equity of Jayant Agro-Organics Ltd (JAYAGROGN.NS) is 15.50%.

The Cost of Debt of Jayant Agro-Organics Ltd (JAYAGROGN.NS) is 10.35%.

	Range	Selected
Cost of equity	13.50% - 17.50%	15.50%
Tax rate	25.80% - 26.10%	25.95%
Cost of debt	10.00% - 10.70%	10.35%
WACC	12.4% - 15.7%	14.0%

WACC

JAYAGROGN.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.8	1.03

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.50%	17.50%

Tax rate	25.80%	26.10%
Debt/Equity ratio	0.24	0.24
Cost of debt	10.00%	10.70%

After-tax WACC	12.4%	15.7%


Selected WACC	14.0%

JAYAGROGN.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 JAYAGROGN.NS:

cost_of_equity (15.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.8) + 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.