JAYSREETEA.NS WACC - Weighted Average Cost of Capital
The WACC of Jay Shree Tea and Industries Ltd (JAYSREETEA.NS) is 13.6%.
| Range | Selected | |
| Cost of equity | 17.2% - 22.1% | 19.65% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 10.5% - 10.5% | 10.5% |
| WACC | 12.3% - 14.8% | 13.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.25 | 1.53 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.2% | 22.1% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.98 | 0.98 |
| Cost of debt | 10.5% | 10.5% |
| After-tax WACC | 12.3% | 14.8% |
| Selected WACC | 13.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JAYSREETEA.NS | Jay Shree Tea and Industries Ltd | 0.98 | 1.07 | 0.64 |
| 500166.BO | Goodricke Group Ltd | 0.16 | 1.12 | 1.01 |
| 507621.BO | Milk Food Ltd | 0.58 | 1.06 | 0.75 |
| 519003.BO | Modi Naturals Ltd | 0.26 | 1.71 | 1.44 |
| 519216.BO | Ajanta Soya Ltd | 0 | 0.85 | 0.85 |
| 540728.BO | Sayaji Industries Ltd | 0.72 | 0.74 | 0.49 |
| AVTNPL.NS | AVT Natural Products Ltd | 0.11 | 1.23 | 1.14 |
| KOTARISUG.NS | Kothari Sugars and Chemicals Ltd | 0.16 | 1.28 | 1.15 |
| SAKHTISUG.NS | Sakthi Sugars Ltd | 2.56 | 1.61 | 0.58 |
| VADILALIND.NS | Vadilal Industries Ltd | 0.06 | 1.2 | 1.15 |
| Low | High | |
| Unlevered beta | 0.81 | 1.06 |
| Relevered beta | 1.37 | 1.79 |
| Adjusted relevered beta | 1.25 | 1.53 |
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 (19.65%) = 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.