JFIL WACC - Weighted Average Cost of Capital
The WACC of Jubilant Flame International Ltd (JFIL) is 4.8%.
| Range | Selected | |
| Cost of equity | 5.2% - 6.7% | 5.95% |
| Tax rate | 26.2% - 27.0% | 26.6% |
| Cost of debt | 5.0% - 5.0% | 5% |
| WACC | 4.4% - 5.2% | 4.8% |
| Category | Low | High |
| Long-term bond rate | 3.9% | 4.4% |
| Equity market risk premium | 4.6% | 5.6% |
| Adjusted beta | 0.29 | 0.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 5.2% | 6.7% |
| Tax rate | 26.2% | 27.0% |
| Debt/Equity ratio | 1.01 | 1.01 |
| Cost of debt | 5.0% | 5.0% |
| After-tax WACC | 4.4% | 5.2% |
| Selected WACC | 4.8% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JFIL | Jubilant Flame International Ltd | 1.01 | -6 | -3.46 |
| EPGC | ECom Products Group Corp | 0.13 | -1.46 | -1.33 |
| EXPL | Endurance Exploration Group Inc | 3.23 | 0 | 0 |
| MLMN | Millennium Prime Inc | 14.35 | -0.65 | -0.06 |
| MSYN | Ms Young Adventure Enterprise Inc | 0.01 | 1.57 | 1.56 |
| PCYS | Primecare Systems Inc | 0.99 | -1.05 | -0.61 |
| RCMH | Reach Messaging Holdings Inc | 105.04 | -1.47 | -0.02 |
| SPXA | SpectrumDNA Inc | 0.04 | 0 | 0 |
| TASK.X.CN | Fasttask Technologies Inc | 0.11 | 0.91 | 0.84 |
| TONR | Tonner-One World Holdings Inc | 0.97 | -1.36 | -0.8 |
| Low | High | |
| Unlevered beta | -0.28 | -0.01 |
| Relevered beta | -0.06 | 0 |
| Adjusted relevered beta | 0.29 | 0.33 |
JFIL'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 JFIL:
cost_of_equity (5.95%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (0.29) + 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.