JPOLYINVST.NS
Jindal Poly Investment and Finance Company Ltd
Price:  
840.2 
INR
Volume:  
2,023
India | Capital Markets

JPOLYINVST.NS WACC - Weighted Average Cost of Capital

The WACC of Jindal Poly Investment and Finance Company Ltd (JPOLYINVST.NS) is 11.9%.

The Cost of Equity of Jindal Poly Investment and Finance Company Ltd (JPOLYINVST.NS) is 12.1%.
The Cost of Debt of Jindal Poly Investment and Finance Company Ltd (JPOLYINVST.NS) is 5%.

RangeSelected
Cost of equity10.5% - 13.7%12.1%
Tax rate4.0% - 7.5%5.75%
Cost of debt5.0% - 5.0%5%
WACC10.4% - 13.5%11.9%
WACC

JPOLYINVST.NS WACC calculation

CategoryLowHigh
Long-term bond rate6.9%7.4%
Equity market risk premium8.3%9.3%
Adjusted beta0.440.63
Additional risk adjustments0.0%0.5%
Cost of equity10.5%13.7%
Tax rate4.0%7.5%
Debt/Equity ratio
0.030.03
Cost of debt5.0%5.0%
After-tax WACC10.4%13.5%
Selected WACC11.9%

JPOLYINVST.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 JPOLYINVST.NS:

cost_of_equity (12.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.44) + 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.