JUBLINDS.NS WACC - Weighted Average Cost of Capital

The WACC of Jubilant Industries Ltd (JUBLINDS.NS) is 13.8%.

The Cost of Equity of Jubilant Industries Ltd (JUBLINDS.NS) is 14.35%.

The Cost of Debt of Jubilant Industries Ltd (JUBLINDS.NS) is 8.65%.

	Range	Selected
Cost of equity	12.70% - 16.00%	14.35%
Tax rate	26.40% - 27.60%	27.00%
Cost of debt	7.90% - 9.40%	8.65%
WACC	12.3% - 15.4%	13.8%

WACC

JUBLINDS.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.7	0.87

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.70%	16.00%

Tax rate	26.40%	27.60%
Debt/Equity ratio	0.07	0.07
Cost of debt	7.90%	9.40%

After-tax WACC	12.3%	15.4%


Selected WACC	13.8%

JUBLINDS.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 JUBLINDS.NS:

cost_of_equity (14.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.7) + 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.