JAYBARMARU.NS WACC - Weighted Average Cost of Capital

The WACC of Jay Bharat Maruti Ltd (JAYBARMARU.NS) is 15.6%.

The Cost of Equity of Jay Bharat Maruti Ltd (JAYBARMARU.NS) is 19.80%.

The Cost of Debt of Jay Bharat Maruti Ltd (JAYBARMARU.NS) is 8.50%.

	Range	Selected
Cost of equity	18.20% - 21.40%	19.80%
Tax rate	32.60% - 33.60%	33.10%
Cost of debt	8.10% - 8.90%	8.50%
WACC	14.4% - 16.8%	15.6%

WACC

JAYBARMARU.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.37	1.46

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.20%	21.40%

Tax rate	32.60%	33.60%
Debt/Equity ratio	0.43	0.43
Cost of debt	8.10%	8.90%

After-tax WACC	14.4%	16.8%


Selected WACC	15.6%

JAYBARMARU.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 JAYBARMARU.NS:

cost_of_equity (19.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.37) + 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.