JKLAKSHMI.NS WACC - Weighted Average Cost of Capital

The WACC of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 14.3%.

The Cost of Equity of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 16.85%.

The Cost of Debt of JK Lakshmi Cement Ltd (JKLAKSHMI.NS) is 9.00%.

	Range	Selected
Cost of equity	15.40% - 18.30%	16.85%
Tax rate	27.70% - 30.40%	29.05%
Cost of debt	8.60% - 9.40%	9.00%
WACC	13.2% - 15.4%	14.3%

WACC

JKLAKSHMI.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.03	1.12

Additional risk adjustments	0.0%	0.5%
Cost of equity	15.40%	18.30%

Tax rate	27.70%	30.40%
Debt/Equity ratio	0.32	0.32
Cost of debt	8.60%	9.40%

After-tax WACC	13.2%	15.4%


Selected WACC	14.3%

JKLAKSHMI.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 JKLAKSHMI.NS:

cost_of_equity (16.85%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.03) + 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.