MAHESHWARI.NS WACC - Weighted Average Cost of Capital

The WACC of Maheshwari Logistics Ltd (MAHESHWARI.NS) is 9.7%.

The Cost of Equity of Maheshwari Logistics Ltd (MAHESHWARI.NS) is 11.80%.

The Cost of Debt of Maheshwari Logistics Ltd (MAHESHWARI.NS) is 11.40%.

	Range	Selected
Cost of equity	10.50% - 13.10%	11.80%
Tax rate	26.80% - 27.40%	27.10%
Cost of debt	10.50% - 12.30%	11.40%
WACC	8.8% - 10.6%	9.7%

WACC

MAHESHWARI.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	0.56

Additional risk adjustments	0.0%	0.5%
Cost of equity	10.50%	13.10%

Tax rate	26.80%	27.40%
Debt/Equity ratio	1.47	1.47
Cost of debt	10.50%	12.30%

After-tax WACC	8.8%	10.6%


Selected WACC	9.7%

MAHESHWARI.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 MAHESHWARI.NS:

cost_of_equity (11.80%) = 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.