JAYNECOIND.NS WACC - Weighted Average Cost of Capital

The WACC of Jayaswal Neco Industries Ltd (JAYNECOIND.NS) is 15.9%.

The Cost of Equity of Jayaswal Neco Industries Ltd (JAYNECOIND.NS) is 18.50%.

The Cost of Debt of Jayaswal Neco Industries Ltd (JAYNECOIND.NS) is 14.10%.

	Range	Selected
Cost of equity	16.30% - 20.70%	18.50%
Tax rate	6.60% - 16.70%	11.65%
Cost of debt	9.60% - 18.60%	14.10%
WACC	13.2% - 18.5%	15.9%

WACC

JAYNECOIND.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.14	1.38

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.30%	20.70%

Tax rate	6.60%	16.70%
Debt/Equity ratio	0.74	0.74
Cost of debt	9.60%	18.60%

After-tax WACC	13.2%	18.5%


Selected WACC	15.9%

JAYNECOIND.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 JAYNECOIND.NS:

cost_of_equity (18.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.14) + 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.