536493.BO WACC - Weighted Average Cost of Capital

The WACC of JK Agri Genetics Ltd (536493.BO) is 13.3%.

The Cost of Equity of JK Agri Genetics Ltd (536493.BO) is 13.30%.

The Cost of Debt of JK Agri Genetics Ltd (536493.BO) is 15.60%.

	Range	Selected
Cost of equity	11.40% - 15.20%	13.30%
Tax rate	26.90% - 28.80%	27.85%
Cost of debt	12.10% - 19.10%	15.60%
WACC	11.3% - 15.2%	13.3%

WACC

536493.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.54	0.79

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.40%	15.20%

Tax rate	26.90%	28.80%
Debt/Equity ratio	0.02	0.02
Cost of debt	12.10%	19.10%

After-tax WACC	11.3%	15.2%


Selected WACC	13.3%

536493.BO'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 536493.BO:

cost_of_equity (13.30%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.54) + 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.