The WACC of Jayaswal Neco Industries Ltd (JAYNECOIND.NS) is 16.6%.
Range | Selected | |
Cost of equity | 17.9% - 21.7% | 19.8% |
Tax rate | 6.6% - 16.7% | 11.65% |
Cost of debt | 9.6% - 18.6% | 14.1% |
WACC | 14.1% - 19.1% | 16.6% |
Category | Low | High |
Long-term bond rate | 6.9% | 7.4% |
Equity market risk premium | 8.3% | 9.3% |
Adjusted beta | 1.33 | 1.49 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 17.9% | 21.7% |
Tax rate | 6.6% | 16.7% |
Debt/Equity ratio | 0.74 | 0.74 |
Cost of debt | 9.6% | 18.6% |
After-tax WACC | 14.1% | 19.1% |
Selected WACC | 16.6% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
JAYNECOIND.NS | Jayaswal Neco Industries Ltd | 0.74 | 1.79 | 1.07 |
ELECTHERM.NS | Electrotherm (India) Ltd | 1.43 | 0.81 | 0.35 |
JAIBALAJI.NS | Jai Balaji Industries Ltd | 0.04 | 1.28 | 1.23 |
JSWISPL.NS | JSW Ispat Special Products Ltd | 1.48 | 1.45 | 0.62 |
MAHSEAMLES.NS | Maharashtra Seamless Ltd | 0 | 1.65 | 1.65 |
PRAKASH.NS | Prakash Industries Ltd | 0.15 | 1.15 | 1.01 |
SARDAEN.NS | Sarda Energy & Minerals Ltd | 0.09 | 0.85 | 0.79 |
TATASTLLP.NS | Tata Steel Long Products Ltd | 3.95 | 1.2 | 0.26 |
TINPLATE.NS | Tinplate Company of India Ltd | 0 | 0.96 | 0.96 |
USHAMART.NS | Usha Martin Ltd | 0.03 | 1.38 | 1.34 |
Low | High | |
Unlevered beta | 0.89 | 1.03 |
Relevered beta | 1.49 | 1.73 |
Adjusted relevered beta | 1.33 | 1.49 |
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 (19.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.33) + 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.