JSLHISAR.NS WACC - Weighted Average Cost of Capital

The WACC of Jindal Stainless (Hisar) Ltd (JSLHISAR.NS) is 15.9%.

The Cost of Equity of Jindal Stainless (Hisar) Ltd (JSLHISAR.NS) is 17.10%.

The Cost of Debt of Jindal Stainless (Hisar) Ltd (JSLHISAR.NS) is 9.10%.

	Range	Selected
Cost of equity	15.80% - 18.40%	17.10%
Tax rate	22.70% - 25.70%	24.20%
Cost of debt	7.60% - 10.60%	9.10%
WACC	14.6% - 17.1%	15.9%

WACC

JSLHISAR.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.08	1.13

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.80%	18.40%

Tax rate	22.70%	25.70%
Debt/Equity ratio	0.14	0.14
Cost of debt	7.60%	10.60%

After-tax WACC	14.6%	17.1%


Selected WACC	15.9%

JSLHISAR.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 JSLHISAR.NS:

cost_of_equity (17.10%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.08) + 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.