ZODJRDMKJ.NS
Zodiac-JRD-MKJ Ltd
Price:  
31.85 
INR
Volume:  
818.00
India | Textiles, Apparel & Luxury Goods
Valuation
Overview
Financials
Forecast
Compare
Historical Price
SolvencyDividends
Transactions
People

ZODJRDMKJ.NS WACC - Weighted Average Cost of Capital

The WACC of Zodiac-JRD-MKJ Ltd (ZODJRDMKJ.NS) is 8.5%.

The Cost of Equity of Zodiac-JRD-MKJ Ltd (ZODJRDMKJ.NS) is 13.30%.
The Cost of Debt of Zodiac-JRD-MKJ Ltd (ZODJRDMKJ.NS) is 5.00%.

Range Selected
Cost of equity 12.40% - 14.20% 13.30%
Tax rate 23.20% - 26.40% 24.80%
Cost of debt 5.00% - 5.00% 5.00%
WACC 8.1% - 9.0% 8.5%
WACC

ZODJRDMKJ.NS WACC calculation

Category Low High
Long-term bond rate 7.5% 8.0%
Equity market risk premium 6.9% 7.9%
Adjusted beta 0.71 0.72
Additional risk adjustments 0.0% 0.5%
Cost of equity 12.40% 14.20%
Tax rate 23.20% 26.40%
Debt/Equity ratio 1 1
Cost of debt 5.00% 5.00%
After-tax WACC 8.1% 9.0%
Selected WACC 8.5%

ZODJRDMKJ.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 ZODJRDMKJ.NS:

cost_of_equity (13.30%) = risk_free_rate (7.75%) + equity_risk_premium (7.40%) * adjusted_beta (0.71) + 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.