JYOTHYLAB.NS WACC - Weighted Average Cost of Capital
The WACC of Jyothy Labs Ltd (JYOTHYLAB.NS) is 15.6%.
| Range | Selected | |
| Cost of equity | 14.1% - 17.1% | 15.6% |
| Tax rate | 19.6% - 21.1% | 20.35% |
| Cost of debt | 4.9% - 7.5% | 6.2% |
| WACC | 14.1% - 17.1% | 15.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.88 | 0.99 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.1% | 17.1% |
| Tax rate | 19.6% | 21.1% |
| Debt/Equity ratio | 0 | 0 |
| Cost of debt | 4.9% | 7.5% |
| After-tax WACC | 14.1% | 17.1% |
| Selected WACC | 15.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| JYOTHYLAB.NS | Jyothy Labs Ltd | 0 | 1.07 | 1.06 |
| 000737.SZ | Nafine Chemical Industry Group Co Ltd | 0.54 | 1.2 | 0.84 |
| 524136.BO | Pee Cee Cosma Sope Ltd | 0.01 | 1.57 | 1.55 |
| 540717.BO | Polo Queen Industrial and Fintech Ltd | 0.01 | 0.46 | 0.46 |
| 603630.SS | Lafang China Co Ltd | 0 | 1.1 | 1.1 |
| 7818.T | Transaction Co Ltd | 0.01 | -0.09 | -0.09 |
| 9919.TW | KNH Enterprise Co Ltd | 0.78 | 1.05 | 0.65 |
| DGC.VN | Ducgiang Chemicals Group JSC | 0.03 | 1.36 | 1.34 |
| EVEREADY.NS | Eveready Industries India Ltd | 0.14 | 1.04 | 0.94 |
| HINDUNILVR.NS | Hindustan Unilever Ltd | 0 | 0.78 | 0.78 |
| Low | High | |
| Unlevered beta | 0.81 | 0.99 |
| Relevered beta | 0.82 | 0.99 |
| Adjusted relevered beta | 0.88 | 0.99 |
JYOTHYLAB.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 JYOTHYLAB.NS:
cost_of_equity (15.60%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.88) + 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.