JKCEMENT.NS WACC - Weighted Average Cost of Capital

The WACC of J K Cement Ltd (JKCEMENT.NS) is 14.4%.

The Cost of Equity of J K Cement Ltd (JKCEMENT.NS) is 15.55%.

The Cost of Debt of J K Cement Ltd (JKCEMENT.NS) is 8.25%.

	Range	Selected
Cost of equity	14.00% - 17.10%	15.55%
Tax rate	33.40% - 33.90%	33.65%
Cost of debt	7.40% - 9.10%	8.25%
WACC	13.0% - 15.8%	14.4%

WACC

JKCEMENT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.86	0.99

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.00%	17.10%

Tax rate	33.40%	33.90%
Debt/Equity ratio	0.13	0.13
Cost of debt	7.40%	9.10%

After-tax WACC	13.0%	15.8%


Selected WACC	14.4%

JKCEMENT.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 JKCEMENT.NS:

cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.86) + 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.