JUMPNET.NS
Jump Networks Ltd
Price:  
6.85 
INR
Volume:  
710,423.00
India | Media
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JUMPNET.NS WACC - Weighted Average Cost of Capital

The WACC of Jump Networks Ltd (JUMPNET.NS) is 11.0%.

The Cost of Equity of Jump Networks Ltd (JUMPNET.NS) is 11.10%.
The Cost of Debt of Jump Networks Ltd (JUMPNET.NS) is 7.00%.

Range Selected
Cost of equity 10.10% - 12.10% 11.10%
Tax rate 5.60% - 13.60% 9.60%
Cost of debt 7.00% - 7.00% 7.00%
WACC 10.1% - 12.0% 11.0%
WACC

JUMPNET.NS WACC calculation

Category Low High
Long-term bond rate 7.5% 8.0%
Equity market risk premium 6.9% 7.9%
Adjusted beta 0.37 0.45
Additional risk adjustments 0.0% 0.5%
Cost of equity 10.10% 12.10%
Tax rate 5.60% 13.60%
Debt/Equity ratio 0.01 0.01
Cost of debt 7.00% 7.00%
After-tax WACC 10.1% 12.0%
Selected WACC 11.0%

JUMPNET.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 JUMPNET.NS:

cost_of_equity (11.10%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.37) + 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.