JPINFRATEC.NS WACC - Weighted Average Cost of Capital

The WACC of Jaypee Infratech Ltd (JPINFRATEC.NS) is 8.5%.

The Cost of Equity of Jaypee Infratech Ltd (JPINFRATEC.NS) is 168.10%.

The Cost of Debt of Jaypee Infratech Ltd (JPINFRATEC.NS) is 5.75%.

	Range	Selected
Cost of equity	45.70% - 290.50%	168.10%
Tax rate	1.70% - 3.40%	2.55%
Cost of debt	4.00% - 7.50%	5.75%
WACC	4.7% - 12.3%	8.5%

WACC

JPINFRATEC.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	4.67	30.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	45.70%	290.50%

Tax rate	1.70%	3.40%
Debt/Equity ratio	54.3	54.3
Cost of debt	4.00%	7.50%

After-tax WACC	4.7%	12.3%


Selected WACC	8.5%

JPINFRATEC.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 JPINFRATEC.NS:

cost_of_equity (168.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (4.67) + 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.