540738.BO WACC - Weighted Average Cost of Capital

The WACC of Shreeji Translogistics Ltd (540738.BO) is 11.6%.

The Cost of Equity of Shreeji Translogistics Ltd (540738.BO) is 13.95%.

The Cost of Debt of Shreeji Translogistics Ltd (540738.BO) is 9.75%.

	Range	Selected
Cost of equity	11.50% - 16.40%	13.95%
Tax rate	24.80% - 26.00%	25.40%
Cost of debt	9.00% - 10.50%	9.75%
WACC	9.8% - 13.4%	11.6%

WACC

540738.BO WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.56	0.92

Additional risk adjustments	0.0%	0.5%
Cost of equity	11.50%	16.40%

Tax rate	24.80%	26.00%
Debt/Equity ratio	0.54	0.54
Cost of debt	9.00%	10.50%

After-tax WACC	9.8%	13.4%


Selected WACC	11.6%

540738.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 540738.BO:

cost_of_equity (13.95%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.56) + 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.