JKLAKSHMI.NS WACC - Weighted Average Cost of Capital

The WACC of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 14.5%.

The Cost of Equity of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 15.90%.

The Cost of Debt of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 9.35%.

	Range	Selected
Cost of equity	13.90% - 17.90%	15.90%
Tax rate	27.50% - 30.20%	28.85%
Cost of debt	9.10% - 9.60%	9.35%
WACC	12.8% - 16.2%	14.5%

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	0.85	1.08

Additional risk adjustments	0.0%	0.5%
Cost of equity	13.90%	17.90%

Tax rate	27.50%	30.20%
Debt/Equity ratio	0.18	0.18
Cost of debt	9.10%	9.60%

After-tax WACC	12.8%	16.2%


Selected WACC	14.5%

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 (15.90%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.85) + 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.