JKPAPER.NS WACC - Weighted Average Cost of Capital

The WACC of JK Paper Ltd (JKPAPER.NS) is 14.2%.

The Cost of Equity of JK Paper Ltd (JKPAPER.NS) is 17.30%.

The Cost of Debt of JK Paper Ltd (JKPAPER.NS) is 7.55%.

	Range	Selected
Cost of equity	16.00% - 18.60%	17.30%
Tax rate	24.70% - 28.70%	26.70%
Cost of debt	6.80% - 8.30%	7.55%
WACC	13.2% - 15.3%	14.2%

WACC

JKPAPER.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.1	1.15

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.00%	18.60%

Tax rate	24.70%	28.70%
Debt/Equity ratio	0.35	0.35
Cost of debt	6.80%	8.30%

After-tax WACC	13.2%	15.3%


Selected WACC	14.2%

JKPAPER.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 JKPAPER.NS:

cost_of_equity (17.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.1) + 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.