ALLCARGO.NS WACC - Weighted Average Cost of Capital

The WACC of Allcargo Logistics Ltd (ALLCARGO.NS) is 9.8%.

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

The Cost of Debt of Allcargo Logistics Ltd (ALLCARGO.NS) is 8.70%.

	Range	Selected
Cost of equity	10.50% - 13.00%	11.75%
Tax rate	25.70% - 32.30%	29.00%
Cost of debt	5.30% - 12.10%	8.70%
WACC	8.2% - 11.3%	9.8%

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	0.43	0.55

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.00%

Tax rate	25.70%	32.30%
Debt/Equity ratio	0.54	0.54
Cost of debt	5.30%	12.10%

After-tax WACC	8.2%	11.3%


Selected WACC	9.8%

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 (0.43) + 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.