JUBLFOOD.NS WACC - Weighted Average Cost of Capital

The WACC of Jubilant Foodworks Ltd (JUBLFOOD.NS) is 11.5%.

The Cost of Equity of Jubilant Foodworks Ltd (JUBLFOOD.NS) is 12.65%.

The Cost of Debt of Jubilant Foodworks Ltd (JUBLFOOD.NS) is 5.95%.

	Range	Selected
Cost of equity	10.40% - 14.90%	12.65%
Tax rate	24.90% - 25.30%	25.10%
Cost of debt	4.00% - 7.90%	5.95%
WACC	9.3% - 13.6%	11.5%

WACC

JUBLFOOD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.42	0.75

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.40%	14.90%

Tax rate	24.90%	25.30%
Debt/Equity ratio	0.16	0.16
Cost of debt	4.00%	7.90%

After-tax WACC	9.3%	13.6%


Selected WACC	11.5%

JUBLFOOD.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 JUBLFOOD.NS:

cost_of_equity (12.65%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.42) + 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.