JKLAKSHMI.NS WACC - Weighted Average Cost of Capital

The WACC of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 14.1%.

The Cost of Equity of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 15.55%.

The Cost of Debt of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 9.85%.

	Range	Selected
Cost of equity	14.30% - 16.80%	15.55%
Tax rate	28.30% - 31.10%	29.70%
Cost of debt	9.70% - 10.00%	9.85%
WACC	13.0% - 15.1%	14.1%

WACC

JKLAKSHMI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.89	0.96

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.30%	16.80%

Tax rate	28.30%	31.10%
Debt/Equity ratio	0.2	0.2
Cost of debt	9.70%	10.00%

After-tax WACC	13.0%	15.1%


Selected WACC	14.1%

JKLAKSHMI.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 JKLAKSHMI.NS:

cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.89) + 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.