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.