JYOTHYLAB.NS
Jyothy Labs Ltd
Price:  
344.55 
INR
Volume:  
273,100.00
India | Household Products
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

JYOTHYLAB.NS WACC - Weighted Average Cost of Capital

The WACC of Jyothy Labs Ltd (JYOTHYLAB.NS) is 15.5%.

The Cost of Equity of Jyothy Labs Ltd (JYOTHYLAB.NS) is 15.50%.
The Cost of Debt of Jyothy Labs Ltd (JYOTHYLAB.NS) is 6.20%.

Range Selected
Cost of equity 14.10% - 16.90% 15.50%
Tax rate 19.60% - 21.10% 20.35%
Cost of debt 4.90% - 7.50% 6.20%
WACC 14.1% - 16.8% 15.5%
WACC

JYOTHYLAB.NS WACC calculation

Category Low High
Long-term bond rate 6.9% 7.4%
Equity market risk premium 8.3% 9.3%
Adjusted beta 0.87 0.97
Additional risk adjustments 0.0% 0.5%
Cost of equity 14.10% 16.90%
Tax rate 19.60% 21.10%
Debt/Equity ratio 0 0
Cost of debt 4.90% 7.50%
After-tax WACC 14.1% 16.8%
Selected WACC 15.5%

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 (15.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.87) + 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.