JAYBARMARU.NS WACC - Weighted Average Cost of Capital

The WACC of Jay Bharat Maruti Ltd (JAYBARMARU.NS) is 14.9%.

The Cost of Equity of Jay Bharat Maruti Ltd (JAYBARMARU.NS) is 20.15%.

The Cost of Debt of Jay Bharat Maruti Ltd (JAYBARMARU.NS) is 8.75%.

	Range	Selected
Cost of equity	18.40% - 21.90%	20.15%
Tax rate	34.00% - 34.90%	34.45%
Cost of debt	8.10% - 9.40%	8.75%
WACC	13.6% - 16.1%	14.9%

WACC

JAYBARMARU.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.39	1.5

Additional risk adjustments	0.0%	0.5%
Cost of equity	18.40%	21.90%

Tax rate	34.00%	34.90%
Debt/Equity ratio	0.58	0.58
Cost of debt	8.10%	9.40%

After-tax WACC	13.6%	16.1%


Selected WACC	14.9%

JAYBARMARU.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 JAYBARMARU.NS:

cost_of_equity (20.15%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.39) + 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.