JETFREIGHT.NS WACC - Weighted Average Cost of Capital

The WACC of Jet Freight Logistics Ltd (JETFREIGHT.NS) is 9.8%.

The Cost of Equity of Jet Freight Logistics Ltd (JETFREIGHT.NS) is 13.35%.

The Cost of Debt of Jet Freight Logistics Ltd (JETFREIGHT.NS) is 9.90%.

	Range	Selected
Cost of equity	10.90% - 15.80%	13.35%
Tax rate	38.80% - 40.90%	39.85%
Cost of debt	9.10% - 10.70%	9.90%
WACC	8.3% - 11.2%	9.8%

WACC

JETFREIGHT.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.48	0.85

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.90%	15.80%

Tax rate	38.80%	40.90%
Debt/Equity ratio	0.92	0.92
Cost of debt	9.10%	10.70%

After-tax WACC	8.3%	11.2%


Selected WACC	9.8%

JETFREIGHT.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 JETFREIGHT.NS:

cost_of_equity (13.35%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.48) + 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.