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 18.45%.

The Cost of Debt of Jindal SAW Ltd (JINDALSAW.NS) is 9.75%.

	Range	Selected
Cost of equity	17.10% - 19.80%	18.45%
Tax rate	35.20% - 38.20%	36.70%
Cost of debt	8.10% - 11.40%	9.75%
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	1.23	1.29

Additional risk adjustments	0.0%	0.5%
Cost of equity	17.10%	19.80%

Tax rate	35.20%	38.20%
Debt/Equity ratio	0.45	0.45
Cost of debt	8.10%	11.40%

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 (18.45%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.23) + 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.