ALLCARGO.NS WACC - Weighted Average Cost of Capital

The WACC of Allcargo Logistics Ltd (ALLCARGO.NS) is 7.1%.

The Cost of Equity of Allcargo Logistics Ltd (ALLCARGO.NS) is 11.75%.

The Cost of Debt of Allcargo Logistics Ltd (ALLCARGO.NS) is 6.50%.

	Range	Selected
Cost of equity	9.80% - 13.70%	11.75%
Tax rate	25.70% - 32.30%	29.00%
Cost of debt	4.90% - 8.10%	6.50%
WACC	5.9% - 8.4%	7.1%

WACC

ALLCARGO.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.35	0.62

Additional risk adjustments	0.0%	0.5%
Cost of equity	9.80%	13.70%

Tax rate	25.70%	32.30%
Debt/Equity ratio	1.81	1.81
Cost of debt	4.90%	8.10%

After-tax WACC	5.9%	8.4%


Selected WACC	7.1%

ALLCARGO.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 ALLCARGO.NS:

cost_of_equity (11.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.35) + 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.