MAHLOG.NS WACC - Weighted Average Cost of Capital

The WACC of Mahindra Logistics Ltd (MAHLOG.NS) is 15.4%.

The Cost of Equity of Mahindra Logistics Ltd (MAHLOG.NS) is 18.55%.

The Cost of Debt of Mahindra Logistics Ltd (MAHLOG.NS) is 8.70%.

	Range	Selected
Cost of equity	16.50% - 20.60%	18.55%
Tax rate	30.00% - 30.00%	30.00%
Cost of debt	5.30% - 12.10%	8.70%
WACC	13.3% - 17.5%	15.4%

WACC

MAHLOG.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	1.16	1.36

Additional risk adjustments	0.0%	0.5%
Cost of equity	16.50%	20.60%

Tax rate	30.00%	30.00%
Debt/Equity ratio	0.33	0.33
Cost of debt	5.30%	12.10%

After-tax WACC	13.3%	17.5%


Selected WACC	15.4%

MAHLOG.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 MAHLOG.NS:

cost_of_equity (18.55%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.16) + 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.