JINDWORLD.NS WACC - Weighted Average Cost of Capital

The WACC of Jindal Worldwide Ltd (JINDWORLD.NS) is 13.9%.

The Cost of Equity of Jindal Worldwide Ltd (JINDWORLD.NS) is 16.20%.

The Cost of Debt of Jindal Worldwide Ltd (JINDWORLD.NS) is 8.90%.

	Range	Selected
Cost of equity	15.00% - 17.40%	16.20%
Tax rate	25.70% - 26.40%	26.05%
Cost of debt	7.80% - 10.00%	8.90%
WACC	12.8% - 15.1%	13.9%

WACC

JINDWORLD.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.97	1.02

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.00%	17.40%

Tax rate	25.70%	26.40%
Debt/Equity ratio	0.3	0.3
Cost of debt	7.80%	10.00%

After-tax WACC	12.8%	15.1%


Selected WACC	13.9%

JINDWORLD.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 JINDWORLD.NS:

cost_of_equity (16.20%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.97) + 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.