JAYSREETEA.NS WACC - Weighted Average Cost of Capital

The WACC of Jay Shree Tea and Industries Ltd (JAYSREETEA.NS) is 13.6%.

The Cost of Equity of Jay Shree Tea and Industries Ltd (JAYSREETEA.NS) is 19.80%.

The Cost of Debt of Jay Shree Tea and Industries Ltd (JAYSREETEA.NS) is 10.50%.

	Range	Selected
Cost of equity	17.30% - 22.30%	19.80%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	10.50% - 10.50%	10.50%
WACC	12.3% - 14.8%	13.6%

WACC

JAYSREETEA.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.25	1.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.30%	22.30%

Tax rate	30.00%	30.00%
Debt/Equity ratio	1	1
Cost of debt	10.50%	10.50%

After-tax WACC	12.3%	14.8%


Selected WACC	13.6%

JAYSREETEA.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 JAYSREETEA.NS:

cost_of_equity (19.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.25) + 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.