JKCEMENT.NS WACC - Weighted Average Cost of Capital

The WACC of J K Cement Ltd (JKCEMENT.NS) is 14.0%.

The Cost of Equity of J K Cement Ltd (JKCEMENT.NS) is 14.95%.

The Cost of Debt of J K Cement Ltd (JKCEMENT.NS) is 8.10%.

	Range	Selected
Cost of equity	13.40% - 16.50%	14.95%
Tax rate	32.80% - 33.20%	33.00%
Cost of debt	7.60% - 8.60%	8.10%
WACC	12.6% - 15.4%	14.0%

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	0.79	0.93

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.40%	16.50%

Tax rate	32.80%	33.20%
Debt/Equity ratio	0.11	0.11
Cost of debt	7.60%	8.60%

After-tax WACC	12.6%	15.4%


Selected WACC	14.0%

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 (14.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.79) + 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.