JOCIL.NS
Jocil Ltd
Price:  
165.50 
INR
Volume:  
6,633.00
India | Chemicals
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

JOCIL.NS WACC - Weighted Average Cost of Capital

The WACC of Jocil Ltd (JOCIL.NS) is 15.4%.

The Cost of Equity of Jocil Ltd (JOCIL.NS) is 15.55%.
The Cost of Debt of Jocil Ltd (JOCIL.NS) is 13.95%.

Range Selected
Cost of equity 12.80% - 18.30% 15.55%
Tax rate 23.00% - 24.60% 23.80%
Cost of debt 7.90% - 20.00% 13.95%
WACC 12.6% - 18.2% 15.4%
WACC

JOCIL.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.72 1.12
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.80% 18.30%
Tax rate 23.00% 24.60%
Debt/Equity ratio 0.04 0.04
Cost of debt 7.90% 20.00%
After-tax WACC 12.6% 18.2%
Selected WACC 15.4%

JOCIL.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 JOCIL.NS:

cost_of_equity (15.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.72) + 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.