JINDRILL.NS WACC - Weighted Average Cost of Capital

The WACC of Jindal Drilling and Industries Ltd (JINDRILL.NS) is 11.1%.

The Cost of Equity of Jindal Drilling and Industries Ltd (JINDRILL.NS) is 12.30%.

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

	Range	Selected
Cost of equity	10.80% - 13.80%	12.30%
Tax rate	27.50% - 34.20%	30.85%
Cost of debt	4.00% - 7.60%	5.80%
WACC	9.7% - 12.6%	11.1%

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	0.48	0.63

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.80%	13.80%

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

After-tax WACC	9.7%	12.6%


Selected WACC	11.1%

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 (12.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.