JUBLFOOD.NS WACC - Weighted Average Cost of Capital

The WACC of Jubilant Foodworks Ltd (JUBLFOOD.NS) is 12.6%.

The Cost of Equity of Jubilant Foodworks Ltd (JUBLFOOD.NS) is 13.35%.

The Cost of Debt of Jubilant Foodworks Ltd (JUBLFOOD.NS) is 6.05%.

	Range	Selected
Cost of equity	11.30% - 15.40%	13.35%
Tax rate	25.10% - 25.60%	25.35%
Cost of debt	4.00% - 8.10%	6.05%
WACC	10.6% - 14.6%	12.6%

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	0.53	0.81

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.30%	15.40%

Tax rate	25.10%	25.60%
Debt/Equity ratio	0.09	0.09
Cost of debt	4.00%	8.10%

After-tax WACC	10.6%	14.6%


Selected WACC	12.6%

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 (13.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.53) + 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.