MAHESHWARI.NS WACC - Weighted Average Cost of Capital

The WACC of Maheshwari Logistics Ltd (MAHESHWARI.NS) is 11.4%.

The Cost of Equity of Maheshwari Logistics Ltd (MAHESHWARI.NS) is 15.05%.

The Cost of Debt of Maheshwari Logistics Ltd (MAHESHWARI.NS) is 12.05%.

	Range	Selected
Cost of equity	12.50% - 17.60%	15.05%
Tax rate	26.20% - 26.80%	26.50%
Cost of debt	12.00% - 12.10%	12.05%
WACC	10.3% - 12.4%	11.4%

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	0.68	1.05

Additional risk adjustments	0.0%	0.5%
Cost of equity	12.50%	17.60%

Tax rate	26.20%	26.80%
Debt/Equity ratio	1.45	1.45
Cost of debt	12.00%	12.10%

After-tax WACC	10.3%	12.4%


Selected WACC	11.4%

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 (15.05%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.68) + 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.