JINDRILL.NS WACC - Weighted Average Cost of Capital

The WACC of Jindal Drilling and Industries Ltd (JINDRILL.NS) is 10.8%.

The Cost of Equity of Jindal Drilling and Industries Ltd (JINDRILL.NS) is 11.90%.

The Cost of Debt of Jindal Drilling and Industries Ltd (JINDRILL.NS) is 5.80%.

	Range	Selected
Cost of equity	10.60% - 13.20%	11.90%
Tax rate	27.50% - 34.20%	30.85%
Cost of debt	4.00% - 7.60%	5.80%
WACC	9.5% - 12.1%	10.8%

WACC

JINDRILL.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.44	0.58

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.60%	13.20%

Tax rate	27.50%	34.20%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	7.60%

After-tax WACC	9.5%	12.1%


Selected WACC	10.8%

JINDRILL.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 JINDRILL.NS:

cost_of_equity (11.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.