AVG.NS WACC - Weighted Average Cost of Capital
The WACC of AVG Logistics Ltd (AVG.NS) is 13.6%.
| Range | Selected | |
| Cost of equity | 14.8% - 18.0% | 16.4% |
| Tax rate | 27.4% - 28.7% | 28.05% |
| Cost of debt | 8.1% - 14.2% | 11.15% |
| WACC | 11.8% - 15.3% | 13.6% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 0.95 | 1.09 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 14.8% | 18.0% |
| Tax rate | 27.4% | 28.7% |
| Debt/Equity ratio | 0.51 | 0.51 |
| Cost of debt | 8.1% | 14.2% |
| After-tax WACC | 11.8% | 15.3% |
| Selected WACC | 13.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| AVG.NS | AVG Logistics Ltd | 0.51 | 1.16 | 0.85 |
| 520127.BO | Balurghat Technologies Ltd | 0.39 | 1.05 | 0.82 |
| 531977.BO | Chartered Logistics Ltd | 0.21 | 1.41 | 1.22 |
| 540738.BO | Shreeji Translogistics Ltd | 0.46 | 0.71 | 0.53 |
| 541206.BO | Orissa Bengal Carrier Ltd | 0.12 | 0.45 | 0.41 |
| 542383.BO | Ritco Logistics Ltd | 0.54 | 0.92 | 0.67 |
| 8430.HK | C&N Holdings Ltd | 0.35 | 1.3 | 1.05 |
| GTRK.ME | Globaltruck Management PAO | 0.19 | 0.01 | 0 |
| NECCLTD.NS | North Eastern Carrying Corporation Ltd | 0.43 | 1.76 | 1.35 |
| TARACHAND.NS | Tara Chand Logistic Solutions Ltd | 0.2 | 0.14 | 0.12 |
| Low | High | |
| Unlevered beta | 0.61 | 0.83 |
| Relevered beta | 0.93 | 1.13 |
| Adjusted relevered beta | 0.95 | 1.09 |
AVG.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 AVG.NS:
cost_of_equity (16.40%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.95) + 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.