JETFREIGHT.NS WACC - Weighted Average Cost of Capital

The WACC of Jet Freight Logistics Ltd (JETFREIGHT.NS) is 9.4%.

The Cost of Equity of Jet Freight Logistics Ltd (JETFREIGHT.NS) is 11.50%.

The Cost of Debt of Jet Freight Logistics Ltd (JETFREIGHT.NS) is 10.50%.

	Range	Selected
Cost of equity	10.20% - 12.80%	11.50%
Tax rate	27.70% - 49.60%	38.65%
Cost of debt	10.50% - 10.50%	10.50%
WACC	9.1% - 9.6%	9.4%

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	0.4	0.53

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.20%	12.80%

Tax rate	27.70%	49.60%
Debt/Equity ratio	0.74	0.74
Cost of debt	10.50%	10.50%

After-tax WACC	9.1%	9.6%


Selected WACC	9.4%

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 (11.50%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.4) + 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.