JINDALSAW.NS WACC - Weighted Average Cost of Capital

The WACC of Jindal SAW Ltd (JINDALSAW.NS) is 14.7%.

The Cost of Equity of Jindal SAW Ltd (JINDALSAW.NS) is 17.50%.

The Cost of Debt of Jindal SAW Ltd (JINDALSAW.NS) is 10.35%.

	Range	Selected
Cost of equity	16.00% - 19.00%	17.50%
Tax rate	34.40% - 38.70%	36.55%
Cost of debt	9.10% - 11.60%	10.35%
WACC	13.4% - 15.9%	14.7%

WACC

JINDALSAW.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.09	1.19

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	19.00%

Tax rate	34.40%	38.70%
Debt/Equity ratio	0.35	0.35
Cost of debt	9.10%	11.60%

After-tax WACC	13.4%	15.9%


Selected WACC	14.7%

JINDALSAW.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 JINDALSAW.NS:

cost_of_equity (17.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.09) + 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.