JPMorgan Indian Investment Trust PLC (JII.L) WACC Analysis

As of May 23, 2025, JPMorgan Indian Investment Trust PLC (JII.L) carries a Weighted Average Cost of Capital (WACC) of 9.9%. WACC reflects the blended rate JPMorgan Indian Investment Trust PLC must pay to both equity and debt holders.

Within that, the cost of equity is 13.4%, the cost of debt is 4.6%, and the effective tax rate is 8.8%.

Breakdown of WACC Components

• Long-term bond rate: 4.0% – 4.5%
• Equity market risk premium: 6.0% – 7.0%
• Adjusted beta: 1.57 – 1.87
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1

What It Means for Investors

With a selected WACC of 9.9%, JPMorgan Indian Investment Trust PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects a moderate financing cost structure.