MAHLOG.NS WACC - Weighted Average Cost of Capital
The WACC of Mahindra Logistics Ltd (MAHLOG.NS) is 16.0%.
| Range | Selected | |
| Cost of equity | 17.3% - 20.2% | 18.75% |
| Tax rate | 30.0% - 30.0% | 30% |
| Cost of debt | 5.3% - 12.1% | 8.7% |
| WACC | 14.4% - 17.7% | 16.0% |
| Category | Low | High |
| Long-term bond rate | 6.9% | 7.4% |
| Equity market risk premium | 8.3% | 9.3% |
| Adjusted beta | 1.26 | 1.33 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 17.3% | 20.2% |
| Tax rate | 30.0% | 30.0% |
| Debt/Equity ratio | 0.28 | 0.28 |
| Cost of debt | 5.3% | 12.1% |
| After-tax WACC | 14.4% | 17.7% |
| Selected WACC | 16.0% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| MAHLOG.NS | Mahindra Logistics Ltd | 0.28 | 1.78 | 1.49 |
| 536264.BO | Tiger Logistics (India) Ltd | 0.06 | 1.36 | 1.3 |
| ACCURACY.NS | Accuracy Shipping Ltd | 0.9 | 1.76 | 1.08 |
| ARSHIYA.NS | Arshiya Ltd | 28.24 | 1.55 | 0.07 |
| BLUEDART.NS | Blue Dart Express Ltd | 0.07 | 0.87 | 0.83 |
| GATI.NS | Gati Ltd | 0.19 | 1.4 | 1.23 |
| PATINTLOG.NS | Patel Integrated Logistics Ltd | 0.1 | 1.65 | 1.54 |
| SNOWMAN.NS | Snowman Logistics Ltd | 0.31 | 1.87 | 1.54 |
| TCI.NS | Transport Corporation of India Ltd | 0.02 | 1.22 | 1.21 |
| TCIEXP.NS | TCI Express Ltd | 0 | 1.11 | 1.11 |
| Low | High | |
| Unlevered beta | 1.17 | 1.26 |
| Relevered beta | 1.39 | 1.49 |
| Adjusted relevered beta | 1.26 | 1.33 |
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 (18.75%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (1.26) + 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.